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LABOR 


AND 


Finance  Revolution 


BY 

B.  S.  HEATH. 


"Ill  fares  the  land,  to  hastening  ills  a  prey, 
Where  wealth  accumulates  aud  men  decay; 
Princes  and  lords  may  flourish  or  may  fade, 
A  breath  can  make  them  as  a  breath  has  made; 
But  a  bold  peasantry,  their  country's  pride, 
When  once  destroyed  can  never  be  supplied."' 


33  05     7 


CHICAGO,    ILL. 

1880. 


Entered  according  to  Act  of  Congress,  in  the  year  1880, 

By  B.  S.  heath. 

In  the  office  of  the  Librarian  of  Congress,  at  Washington,  D.  C. 


prikted  by 

Ottaway  &  Company, 

147  &  149  Fifth  Avenue,  Chicago. 


ELECTROTTPED  BY 

Blomgren  Bros.  &  Co. 
162  &  164  Clark  Street,  Chicago. 


•  •  •  • 

« «  •  •      • 


-r  i- 


INTIlODUCTIO]Sr. 


-C- 


>- 
as 


To   Liberty  and   Labor  this  volume  is   respectfully 
dedicated.     In  presenting  it  to  the  public  the  author  is 
not  unmindful  of  the  responsibility  resting  upon  him, 
""    and  he  has  therefore,  with  scrupulous  care  and  conscien- 
tious regard  for  the  best  interests  of  his  fellow  country- 
'-    men,  endeavored  to  treat  fairly,  honorably,  truthfully, 
.     but  fearlessly  the  various  subjects  discussed. 
^,;       In  this  country,  where  the  government,  the  laws,  the 
political,  social,  financial   and  educational  institutions 
are  just  what  the  majority  choose  to  make  them,  it  is  of 
the  most  vital  importance  that  this  majority  be  properly 
educated,   so  that  these  institutions  may  promote  the 
general  welfare. 
Vji        Humanity  is  groaning  and  dying  upon  the  rack  of 
N  false  and  pernicious  theories — theories  based  upon  the 
serfdom  and  degradation  of  the  masses. 

From  time  immemorial,  a  law- favored  and  a  law-mak- 
ing aristocratic  few,  have  rolled  in  idle  luxury  at  the 
expense  of  the  toiling  many. 

They  have  devised,  promulgated,  and  confirmed  in 
the  human  mind,  political  as  well  as  religious  dogmas, 
both  degrading  and  enslaving,  which  have  become  so 
deeply  and  firmly  rooted  that  it  is  next  to  impossible  to 
eradicate  them. 

God  in  His  wisdom  and  benevolence  placed  the  whole 
human  family  upon  the  stream  of  time,  and  furnished 

3 


4  INTRODUCTION. 

all  with  the  necessary  means  and  facilities  for  a  safe  and 
prosperous  voyage. 

He  provided  ample  resources  to  gratify  every 
normal  desire,  hope  and  aspiration  of  man;  and  had 
not  avarice,  selfishness  and  ambition  confiscated  the 
patrimony  of  unborn  generations,  the  world  to-day 
might  have  been  an  Eden,  and  men,  knowing  neither 
want  nor  misery,  would  have  been  at  peace  with  one 
another,  and  in  harmony  with  every  department  of 
nature. 

The  mission  of  the  age  is  to  restore  to  humanity  its 
confiscated  patrimony,  to  eradicate  false  and  pernicious 
theories,  and  to  establish  society  upon  the  rock  of  Eter- 
nal Truth,  Justice  and  Equality.  To  do  this,  old  errors 
must  be  exposed,  their  dangers  and  evil  tendencies  clearly 
demonstrated,  and  truth  so  plainly  illustrated  that  he 
who  runs  may  read  and  understand. 

Every  man  of  mature  age  has  seen  and  experienced 
"  good  times  "  and  "  hard  times." 

Many  remember  tlie  prosperous  days  of  1855  and  '56, 
and  many  a  financial  wreck  to-day  dates  its  misfortunes 
to  the  crash  of  '57. 

In  1865  there  were  but  530  business  failures  in  the 
United  States,  with  liabilities  but  a  trifle  over  $8,000,- 
000.  In  1875  there  were  7,044:  business  failures,  with  a 
loss  of  over  $200,000,000. 

Why  this  change  in  ten  years? 

Why  were  all  departments  of  trade  and  all  kinds  of 
labor  active  and  prosperous  in  1855  and  1865,  and  why 
the  reverse  in  the  years  that  immediately  succeeded? 

The  resources  of  nature  had  not  dried  up. 

The  earth  had  not  refused  her  annual  abundance. 


INTRODUCTION.  O 

The  sun  continued  to  shine,  the  rains  to  fall,  and  the 
seasons  to  come  and  go. 

The  energies  of  man  had  not  abated  or  his  wants 
diminished. 

The  cattle  on  a  thousand  hills,  the  fish  of  the  sea,  the 
birds  of  the  air,  and  the  beasts  of  the  forest,  as  well  as 
their  aboriginal  competitor,  fared  as  sumptuously,  and 
were  supplied  as  abundantly  during  the  periods  of  em- 
barrassed, bankrupted,  starving  and  demoralized  civili- 
zation, as  ever. 

Hard  times,  then,  as  well  as  the  bankruptcies,  enforced 
idleness,  starvation,  and  the  crime,  misery  and  moral 
degradation  growing  out  of  conditions  like  the  present, 
being  unnatural,  not  in  accordance  with,  or  the  result 
of  anv  natural  law,  must  be  attributed  to  that  kind  of 
unwise  and  pernicious  legislation  which  history  proves 
to  have  produced  similar  results  in  all  ages  of  the  world. 

It  is  the  mission  of  the  age  to  correct  these  errors  in 
human  legislation,  to  adopt  and  establish  pulicies  and 
systems,  in  accord  with,  rather  than  in  opposition  to 
divine  law. 

The  aim  of  government  should  be  to  protect  man  in 
his  natural  rights,  "  to  insure  domestic  tranquility," 
"to  promote  the  general  welfare,"  and  to  insure  the 
blessings  of  liberty. 

No  one  will  deny  but  these  objects  have  been  shame- 
fully neglected. 

The  riglits  to  sin,  starve  and  suffer,  are  about  the  only 
ones  vouchsafed  to  American  toilers  to-day. 

The  times  aggravate  and  provoke  discord  and  violence, 
and  threaten  anarchy  rather  than  peace  and  tranquility. 

The  finance  legislation  of  the  past  few  years  has  been 
disastrous  to  the  general  welfare;  it  has  deprived  the 


6  INTRODUCTION. 

masses  of  the  blessings  of  liberty,  and  if  allowed  to  re- 
main in  force,  that  blessed  boon  must  sooner  or  later 
become  erased  from  our  inventory  of  inheritance,  and  the 
sons  of  Revolutionary  sires  consigned  to  that  doom  to 
which  the  same  system  has  subjected  the  toilers  of  the 
Old  World. 

Should  this  volume  aid  in  convincing  any  number  of 
my  fellow  countrymen  of  the  correctness  of  the  princi- 
ples and  policy  it  advocates,  it  will  vindicate  the  judg- 
ment of  those  who  induced  me  to  prepare  it  for  publi- 
cation;  and  should  it  be  the  means  of  enlisting  any 
number  of  recruits  for  the  little  army  now  being  organ- 
ized to  revolutionize  the  social,  political,  and  financial 
institutions  of  the  age,  so  as  to  emancipate  labor,  and 
establish  society  upon  the  basis  of  Justice,  Equity  and 
Human  Rights,  it  will  gratify  the  most  ardent  wish  of 

The  Author. 
Chicago,  III.,  1880. 


CONTENTS. 


INTRODUCTION 3 

DECLARATION    OF    INDEPENDENCE 11 

CONSTITUTION  OP    THE    UNITED  STATES 13 

CHAPTER  I. 

THE    COMING    REVOLUTION 37 

CHAPTER  II. 

OUR  RESOURCES 41 

CHAPTER  III. 

CAUSE    OF    THE  DARK  AGES 44 

Effects  of  Currency  Contraction ' 49 

CHAPTER  IV. 

NATURE  AND  FUNCTIONS  OF  MONEY 54 

Material  of  Money , 58 

Antiquity  of  the  Greenback  System 60 

Power  to  Create  Money 64 

Value 69 

Price 73 

CHAPTER  V. 

COLONIAL  MONEY 75 

CHAPTER  VI. 

CONTINENTAL  MONEY - 79 

Tlie  first  United  States  Bank 88 

The  second  United  States  Bank 91 

State  Banks 94 

CHAPTER  VII. 

BANK  OF  VENICE 98 

7 


8  CONTENTS. 


CHAPTER  VIII. 

METALLIC    MONEY. 104 

Not  a  Standard  of  Value 106 

Digest  of  Coinage  Acts 112 

Coin  in  tlie  United  States 112 

The  World's  Annual  Production  of  Gold  and  Silver 123 

Annual  Consumption  in  the  Arts 124 

Gold,  Silver  and  Base  Metal  in  Europe 124 

Annual  Production  from  American  Mines 125 

Amount  of  Coin  and  Bullion  in  Bank  of  England 126 

Amount  Held  by  the  Bank  of  France 126 

Silver  Standard  Countries 127 

Double  Standard  Countries 127 

Gold  Standard  Countries 128 

Average  Gold  Value  of  Greenbacks  from  1864  to  1878 128 

Why  and  How  Silver  was  Demonetized 128 

CHAPTER  IX. 

NATIONAL  BANKS j 133 

Legal  Tender  of  Bank  Notes 134 

National  Bank  Circulation 134 

Security  of  Bank  Notes 137 

Amount  Outstanding 137 

Circulation  of  Bank  of  France 137 

Number  of  Banks,  Capital,  Surplus,  and  Profits 138 

Imperial  Bank  of  Germany 138 

Bank  Taxation 139 

Origin  of  Bank  Notes 140 

Constitutionality  of  Bank  Notes 143 

CHAPTER  X. 

LEGAL   TENDER  PAPER  MONEY 147 

Amount  of  Legal  Tender  Paper  Money  in  the  World 147 

The  Greenback 148 

Constitutionality  of  the  Legal  Tender  Act — Decision  of  the 
Supreme  Court 153 


CONTENTS. 


CHAPTER  XI. 

THE   PUBLIC  DEBT 158 

Of  France,  England  and  America  compared 162 

CHAPTER  XII. 

DIGEST  OP  FINANCE  LEGISLATION   SINCE   1860 168 

CHAPTER  XIII. 

THE  BONDAGE 183 

CHAPTER  XIV. 

TABLES -- 188 

What  the  Bonds  Cost 188 

Foreign  Coins. 189 

Monthly  Range  of  Gold,  1803  to  1868 190 

Amount  of  Paper  Currency,  1854  to  1879 ..191 

Refunding 192 

Bonds  to  Mature  1880  and  1881 192 

Exports  and  Imports 193 

Agricultural  Products 193 

Money  in  tlie  Country 193 

Debts,  Revenues,  etc.,  of  Nations 1.. 194 

Public  Debt  of  the  United  States  from  1791  to  1879 195 

Population,  Capitals,  and  Areas  of  Nations .196 

Table  of  Prices  for  Fifty  Years 197 

Compound  Interest  Table.. 199 

Value  of  Farm  Products,  1878,1879 200 

Importation  of  Specie_ 201 

Power  of  Interest  to  Rob .201 

The  Increasing  Value  of  Money 202 

Salaries  of  Public  Officers 203 

Supreme  Court  of  the  United  States  204 

Business  Failures 205 

Circulation  aud  Specie  of  State  Banks 206 

Popular  Vote  of  1856 207 

"     of  1876 208 


10  CONTENTS. 


PART  SECOND. 


CHAPTER  I. 

THE  RIGHTS  OF  MAN 209 

CHAPTER  II. 

THE   LAND    QUESTION - 214 

CHAPTER  III. 

DEBT  AND  USURY 224 

CHAPTER  IV. 

NATIONAL  CONVENTIONS 233 

CHAPTER  V. 

GREENBACK   LABOR    PLATFORM 239 

Jefferson's  Political  Maxims 241 

CHAPTER  VI 

WHAT  CONGRESS   HAS  DONE  FOR   SHYLOCK 243 

CHAPTER  VII. 

OUR  FLAT-HEAD  POLICY 246 

CHAPTER  VIII. 

THE  GREAT  NATIONAL  BEAR 249 

CHAPTER  IX. 

ENGLAND'S  AMERICAN  POLICY 252 

CHAPTER  X. 

THE  ARROGANCE  OF  CAPITAL 258 

CHAPTER  XI. 

A    FARMERS'    REPUBLIC 264 

CHAPTER  XII. 
CONCLUSION 277 

THE  DEMON  TASK  MASTER   (POEM) 283 

APPENDIX. 

NOTES,  QUESTIONS  AND   ANSWERS 284-302 


THE    DECLARATION    OF   INDEPENDENCE.  11 


THE  DECLARATION  OF  INDEPENDENCE. 

When,  in  the  course  of  human  events,  it  becomes  necessary  for 
one  people  to  dissolve  the  political  bands  which  have  connected  them 
with  another,  and  to  assume  among  the  powers  of  the  earth,  the  sep- 
arate aod  equal  station  to  whicli  the  laws  of  nature  and  of  nature's 
God  entitles  them,  a  decent  respect  to  the  opinions  of  mankind 
requires  that  they  .should  declare  the  causes  which  impel  them  to  the 
separation. 

We  hold  these  truths  to  be  self-evident,  that  all  men  are  created 
equal ;  that  they  are  endowed  by  their  Creator  with  certain  inalienable 
rights;  that  among  these  are  life,  liberty  and  the  pursuit  of  happi- 
ness. That  to  secure  these  rights,  governments  are  Instituted  among 
men,  deriving  their  just  powers  from  the  consent  of  the  governed; 
that,  whenever  any  form  of  government  becomes  destructive  of  these 
ends,  it  is  the  right  of  the  people  to  alter  or  to  abolish  it,  and  to  insti- 
tute a  new  government,  laying  its  foundations  on  such  principles, 
and  organizing  its  powers  in  such  form,  as  to  them  shall  seem  most 
likely  to  eflecl  their  safety  and  happiness.  Prudence,  indeed,  will 
dictate  that  governments  long  established  should  not  be  changed  for 
light  and  transient  causes;  and,  accordingly,  all  experience  hath 
shown  that  mankind  are  more  disposed  to  sutler,  while  evils  are 
suflerable,  than  to  right  them  by  abolishing  the  forms  to  which  they 
are  accustomed.  But  when  a  long  train  of  abuses  and  usurpations, 
pursuing  invariably  the  same  object,  evinces  a  design  to  reduce  them 
under  absolute  despotism,  it  is  their  right,  it  is  their  duty  to  throw  oif 
such  government,  and  to  provide  new  guards  for  their  future  secu- 
rity. Such  has  been  the  patient  sufierance  of  these  colonies,  and  such 
is  now  the  necessity  which  constrains  them  to  alter  their  former  sys- 
tems of  government.  The  history  of  the  present  King  of  Great 
Britain  is  a  history  of  repeated  injuries  and  usurpations,  all  having 
in  direct  object  the  establishment  of  an  absolute  tyranny  over  these 
States.     To  prove  this  let  facts  be  submitted  to  a  candid  world : 

He  has  refused  his  assent  to  laws  the  most  wholesome  and  neces- 
sary for  the  public  good. 

He  has  forbidden  his  Governors  to  pass  laws  of  immediate  and 
pressing  importance,  unless  suspended  in  th^ir  operation  till  his 
assent  should  be  obtained ;  and  when  so  suspended,  he  has  utterly 
neglected  to  attend  to  them. 

He  has  refused  to  pass  other  laws  for  the  accommodation  of  large 
districts  of  people,  unless  those  people  would  relinquish  the  right  of 
representation  in  the  legislature;  a  right  inestimable  to  them,  and 
formidable  to  tyrants  only. 

He  has  called  together  legislative  bodies  at  places  unusual,  uncom- 
fortable, and  distant  from  the  depository  of  their  public  records, 
for  the  sole  measure  of  fatiguing  them  into  compliance  with  his. 
measures. 

He  has  dissolved  representative  houses  repeatedly  for  opposing, 
with  manly  firmness,  his  invasions  on  the  rights  of  the  people. 

He  has  refused,  for  a  long  time  after  such  dissolution,  to  cause 
otters  to  be  elected ;  whereby  the  legislative  powers,  incapable  of 


12  THE    DECLARATION    OF    INDEPENDENCE. 

annihilation,  have  returned  to  the  people  at  large  for  their  exercise; 
the  State  remaining  in  the  meantime  exposed  to  all  the  danger  of 
invasion  from  without,  and  convulsions  within. 

He  has  endeavored  to  prevent  the  population  of  these  States;  for 
that  purpose,  obstructing  the  laws  for  naturalization  of  foreigners; 
refusing  to  pass  others  to  encourage  their  migration  hither,  and 
raising  the  conditions  of  new  appropriations  of  lands. 

He  has  obstructed  the  administration  of  justice,  by  refusing  his 
assent  to  laws  for  establishing  judiciary  powers.  ' 

He  has  made 'judges  dependent  on  his  will  alone,  for  the  tenure  of 
their  offices,  and  the  amount  and  payment  of  their  salaries. 

He  has  erected  ^  multitude  of  new  offices,  and  sent  hither  swarms 
of  officers  to  harass  our  people,  and  eat  out  their  substance. 

He  has  kept  among  us  in  times  of  peace,  standing  armies,  without 
the  consent  of  our  legislature. 

He  has  affected  to  render  the  military  independent  of,  and  superior 
to,  the  civil  power. 

He  has  combined  with  others,  to  subject  us  to  a  jurisdiction  foreign 
to  our  constitution,  and  unacknowledged  by  our  laws;  giving  his 
assent  to  their  acts  of  pretended  legislation. 

For  quartering  large  bodies  of  armed  troops  among  us: 

For  protecting  them,  by  a  mock  trial,  from  punishment  for  any 
murders  which  they  should  commit  on  the  inhabitants  of  these 
States : 

For  cutting  off  our  trade  with  all  parts  of  the  world: 

For  imposing  taxes  on  us  without  our  consent : 

For  depriving  us,  in  many  cases,  of  the  benefits  of  trial  by  jury: 

For  transporting  us  beyond  the  seas  to  be  tried  for  pretended 
offenses : 

For  abolishing  the  free  system  of  English  laws  in  a  neighboring 
province,  establishing  therein  an  arbitrarj'-  government,  and  enlarg- 
ing its  boundaries,  so  as  to  render  it  at  once  an  example  and  fit  instru- 
ment for  introducing  the  same   al)solute  rule  into  these  colonies: 

For  taking  away  our  charters,  abolishing  our  most  valuable  laws, 
and  altering  fundamentally,  the  powers  of  our  government: 

For  suspending  our  own  legislatures,  and  declaring  themselves 
invested  with  power  to  legislate  for  us  in  all  cases  whatsoever. 

He  has  abdicated  government  here,  by  declaring  us  out  of  his  pro- 
tection, and  waging  war  against  us. 

He  has  plundered  our  seas,  ravaged  our  coasts,  burnt  cur  towns, 
and  destroyed  the  lives  of  our  people. 

He  is,  at  this  time,  transporting  large  armies  of  foreign  mercen- 
aries  to  complete  the  work  of  death,  desolation,  and  tyranny,  already 
begun,  with  circumstances  of  cruelty  and  perfidy  scarcel}'  paralleled 
in  the  most  barbarous  ages,  and  totally  unworthy  the  head  of  a  civ- 
ilized nation. 

He  has  constrained  our  fellow-citizens,  taken  captive  on  the  high 
seas,  to  bear  arms  against  their  country,  to  become  the  execution- 
ers of  their  friends  and  brethren,  or  to  fall  themselves  by  their 
hand?. 

He  lias  excited  domestic  insurrections  amongst  us,  and  has  endeav- 
ored to  bring  on  the  inhabitants  of  our  frontiers,  the  merciless  Indiaa 


CONSTITUTION  OF  THE  UNITED  STATES  OF  AMEBIC  A.       13 

savages,  whose  known  rule  of  warfare  is  an  undistinguished  destruc- 
tion of  all  ages,  sexes  and  conditions. 

In  every  stage  of  these  oppressions,  we  have  petitioned  for  redress, 
in  the  most  humble  terms ;  our  repeated  petitions  have  been  answered 
only  by  repeated  injury.  A  prince,  whose  character  is  thus  marked 
by  every  act  which  may  define  a  tyrant,  is  unfit  to  be  the  ruler 
of  a  free  people. 

Nor  have  we  been  wanting  in  attention  to  our  British  brethren. 
We  have  warned  them  from  time  to  time,  of  attempts  made  by  their 
Legislature  to  extend  an  unwarrantable  jurisdiction  over  us>  We 
have  reminded  them  of  the  circumstances  of  our  emigration  and 
settlement  here.  We  have  appealed  to  their  native  justice  and  mag- 
nanimity, and  we  have  conjured  them,  by  the  ties  of  our  common 
kindred,  to  disavow  these  usurpations,  which  would  inevitably  inter- 
rupt our  connections  and  correspondence.  They,  too,  have  been  deaf 
to  the  voice  of  justice  and  consanguinity.  We  must,  therefore, 
acqulese  in  the  necessity  which  denounces  our  separation,  and  hold 
them,  as  we  hold  the  rest  of  mankind,  enemies  in  war,  in  peace, 
friends. 

We,  therefore,  the  representatives  of  the  UNITED  STATES  OF 
AMERICA,  in  GENERAL  CONGRESS  assembled,  appealing  to 
the  Supreme  Judge  of  the  World  for  the  rectitude  of  our  intentions, 
do,  in  the  name,  and  by  the  authority  of  the  good  people  of  these 
colonies,  solemnly  publish  and  declare:  That  these  United  Colonies 
are,  and  of  right  ought  to  be  FREE  AND  INDEPENDENT 
STATES;  that  they  are  absolved  from  all  allegiance  to  the  British 
crown,  and  that  political  connection  between  them  and  the  State  of 
Great  Britain  is,  and  ought  to  be  totally  dissolved;  and  that,  as 
FREE  AND  INDEPENDENT  STATES,  they  have  full  power  to 
levy  war  conclude  peace,  contract  alliances,  establish  commerce, 
and  do  all  other  acts  and  things  which  INDEPENDENT  STATES 
may  of  right  do.  And,  for  the  support  of  this  declaration,  and  in  a 
firm  reliance  upon  the  protection  of  DIVINE  PROVIDENCE,  we 
mutually  pledge  to  each  other  our  lives,  our  fortunes,  and  our  sacred 
honor. 


CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA. 

We  the  People  of  the  United  States,  in  order  to  form  a  more  perfect 
Union,  establish  justice,  insure  domestic  tranquility,  provide  for ^  the 
common  defense,  promote  the  general  tcelfare,  and  secure  the  blessings 
of  liberty  to  ourselves  and  our  posterity,  do  ordain  and  establish  this 
Constitution  for  the  United  States  of  America. 

Article  I. 

Section  I. — All  legislative  powers  herein  granted  shall  be  vested 
in  a  Congress  of  the  United  States,  which  shall  consist  of  a  Senate 
and  House  of  Representatives. 


14      CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA. 

Sec.  II. — 1.  The  House  of  Representatives  shall  be  composed  of 
members  chosen  every  second  year  by  the  people  of  the  several 
States,  and  electors  in  each  State  shall  have  the  qualifications  requi- 
site for  electors  of  the  most  numerous  branch  of  the  State  legislature. 

2.  No  person  shall  be  a  representative  who  shall  not  have  attained 
to  the  age  of  twenty-five  years,  and  been  seven  years  a  citizen  of  the 
United  States,  and  wlio  shall  not,  when  elected,  be  an  inhabitant  of 
that  State  in  which  he  shall  be  chosen. 

3.  Representatives  and  direct  taxes  shall  be  apportioned  among  the 
several  States  which  may  be  included  within  this  Union,  according 
to  their  res'iective  numbers,  which  shall  be  determined  by  adding  to 
the  whole  number  of  free  persons,  including  those  bound  to  service 
for  a  term  of  years,  and  excluding  Indians  not  taxed,  three-fifths  of 
all  other  persons.  The  actual  enumeration  shall  be  made  within 
three  years  after  the  first  meeting  of  the  Congress  of  the  United 
States,  and  within  every  subsequent  term  of  ten  years,  in  such  man- 
ner as  they  shall  by  law  direct.  The  number  of  representatives  shall 
not  exceed  one  for  every  thirty  thousand,  but  each  State  shall  have 
at  least  one  representative;  and  until  such  enumeration  shall  be  made 
the  State  of  New  Hampshire  shall  be  entitled  to  choose  three;  ]\Iassa- 
chusetts,  eight;  Rhode  Isl-and  and  Providence  Plantations,  one;  Con- 
necticut, five;  New  York,  six;  New  Jersey,  four;  Pennsylvania, 
eight;  Delaware,  one;  Maryland,  six;  Virginia,  ten;  North  Caro- 
lina, five;  South  Carolina,  five,  and  Georgia,  three. 

4.  When  vacancies  happen  in  the  representation  from  any  State, 
the  executive  authority  thereof  shall  issue  writs  of  election  to  fill 
such  vacancies. 

5.  The  House  of  Representatives  shall  choose  their  speaker  and 
other  officers;  and  shall  have  the  sole  power  of  impeachment. 

Sec.  III. — 1.  The  Senate  of  the  United  States  shall  be  composed  of 
two  senators  from  each  State,  chosen  by  the  legislature  thereof,  for 
six  years;  and  each  senator  shall  have  one  vote. 

2.  Immediately  after  they  shall  be  assembled  in  consequence  of  the 
first  election,  they  shall  be  divided  as  equally  as  may  be  into  three 
classes.  The  seats  of  the  senators  of  the  first  class  shall  be  vacated 
at  the  expiration  of  the  second  year,  the  second  class  at  the  expiration 
of  the  fourth  year,  and  of  the  third  class  at  the  expiration  of  the  sixth 
year,  so  that  one-third  may  be  chosen  every  second  year ;  and  if  vacan- 
cies happen  by  resignation,  or  otherwise,  during  the  recess  of  the 
legislature  of  any  State,  the  executive  thereof  may  make  temporary 
appointments  until  the  next  meeting  of  the  legislature,  which  shall 
then  fill  such  vacancies. 

3.  No  person  shall  be  a  senator  who  shall  not  have  attained  the  age 
of  thirty  years,  and  been  nine  years  a  citizen  of  the  United  States, 
and  who  shall  not,  when  elected,  be  an  inhabitant  of  that  State  for 
which  he  shall  be  chosen. 

4.  The  Vice  President  of  the  United  States  shall  be  President  of 
the  Senate,  but  shall  have  no  vote,  unless  they  be  equally  divided. 

5.  The  Senate  shall  choose  their  other  officers,  and  also  a  Presi- 
dent jiro  tempore,  in  the  absence  of  the  Vice  President,  or  when  he 
shall  exercise  the  office  of  President  of  the  United  States. 

6.  The  Senate  shall  have  the  sole  power  to  try  all  impeachments. 


CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA,       15 

When  sitting  for  that  purpose  they  shall  be  on  oath  or  affirmation. 
When  the  President  of  the  United  States  is  tried,  the  Chief  Justice 
shall  preside ;  and  no  person  shall  be  convicted  without  the  concur- 
rence of  two-thirds  of  tlie  members  present. 

7.  Judgment  in  cases  of  impeachment  shall  not  extend  further 
than  to  removal  from  office,  and  disqualification  to  hold  and  enjoy 
any  office  of  honor,  trust  or  profit  under  the  United  States;  but  the 
party  convicted  shall  nevertheless  be  liable  and  subject  to  indictment, 
trial,  judgment  and  punishment,  according  to  law. 

Sec.  IV. — 1.  The  times,  places  and  manner  af  holding  elections  for 
senators  and  representatives,  shall  be  prescribed  in  the  State  by  tlie 
legislature  thereof;  but  the  Congress  may  at  any  time  by  law  make 
or  alter  such  regulations,  except  as  to  the  places  of  choosing  senators. 

2.  The  Congress  shall  ass'einble  at  least  once  in  every  year,  and 
such  meeting  shall  be  on  the  first  Monday  in  December,  unless  they 
shall  by  law  appoint  a  different  day. 

Sec.  V. — 1.  Each  house  shall  be  judge  of  the  elections,  returns  and 
qualificaiionsof  its  own  members,  and  a  majority  of  each  shall  con- 
stitute a  qunrum  to  do  business;  but  a  smaller  number  may  adjourn 
from  day  to  day,  and  may  be  authorized  to  compel  the  attendance  of 
absent  members,  in  such  manner,  and  under  such  penalties  as  each 
house  may  provide. 

2.  Each  house  may  determine  the  rules  of  its  proceedings,  punish 
its  members  for  disorderly  behavior,  and,  with  the  concurrence  of 
two-thirds,  expel  a  member. 

3.  Each  house  shall  keep  a  journal  of  its  proceedings,  and  from 
time  to  time  publish  the  same,  excepting  such  parts  as  may  in  their 
judgment  require  secrecy;  and  the  yeas  and  nays  of  the  members  of 
either  house  on  any  question  shall,  at  the  desire  of  one-fifth  of  those 
present,  be  entered  on  the  journal. 

4.  Neither  house,  during  the  session  of  Congress,  shall,  without 
the  consent  of  the  otiier,  adjourn  for  more  than  three  days,  nor  to  any 
other  place  than  that  in  which  the  two  houses  shall  be  sitting. 

Sec.  VI. — 1.  The  senators  and  representatives  shall  receive  a  com- 
pensation for  their  services,  to  be  ascertained  by  law,  and  paid  out  of 
the  Treasury  of  the  United  States.  They  shall  in  all  cases,  except 
treason,  felony,  and  breach  of  the  peace,  be  privileged  from  arrest 
during  their  attendance  at  the  session  of  their  respective  houses,  and 
going  to  and  returning fiom  the  same;  and  for  any  speech  or  debate 
in  either  house,  they  shall  not  be  questioned  in  any  other  place. 

2.  No  senator  or  representative  shall,  during  the  time  for  which  he 
was  elected,  be  appointed  to  any  civil  office  under  the  authority  of  the 
United  Slates,  which  shall  have  been  created,  or  the  emoluments 
whereof  shall  have  been  increased  during  such  time;  and  no  person 
holding  any  oftice  under  the  United  States,  shall  be  a  member  of 
either  house  during  his  continuance  in  office. 

Sec.  VII. — 1.  AH  bills  for  raising  revenue  shall  originate  in  the 
House  of  Representatives;  but  the  Senate  may  propose  or  concur 
with  amendments  as  on  other  bills. 

2.  Every  bill  which  shall  have  passed  the  House  of  Representatives 
and  the  Senate,  shall,  before  it  become  a  law,  be  presented  to  the 
President  of  the  United  States ;  if  he  approve  he  shall  sign  it ;  but  if 


16       CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA. 

not  he  shall  return  it,  with  his  objections,  to  that  house  in  which  it 
shall  have  originated,  who  shall  enter  the  objections  at  large  on  their 
journal,  and  proceed  to  reconsider  it.  If  afier  such  reconsideration 
two-thirds  of  that  house  shall  agree  to  pass  the  bill,  it  shall  be  sent, 
together  with  the  objections,  to  the  other  house,  by  which  it  shall 
likewise  be  reconsidered,  and  if  approved  by  two-thirds  of  that  house, 
it  shall  become  a  law.  But  in  all  such  cases  the  votes  of  both  houses 
shall  be  determined  by  yeas  and  nays,  and  the  names  of  the  persons 
voting  for  and  against  the  bill  shall  be  entered  on  the  journal  of  each 
house  respectively.  If  any  bill  sliall  not  be  returned  by  the  President 
within  ten  days  (Sunday  excepted)  after  it  shall  have  been  presented 
to  him,  the  same  shall  be  a  law,  in  iike  manner  as  if  he  had  signed 
it,  unless  the  Congress  by  their  adjournment  prevent  its  return,  in 
which  case  it  shall  not  be  a  law. 

3.  Every  order,  resolution,  or  vote  to  which  the  concurrence  of  the 
Senate  and  House  of  Representatives  may  be  necessary  (except  on  a 
question  of  adjournment)  shall  be  presented  to  the  President  of  the 
United  States ;  and  before  the  same  shall  take  effect,  shall  be  approved 
by  him,  or  being  disapproved  by  him,  shall  be  re-passed  by  two-thirds 
of  the  Senate  and  House  of  Representatives,  according  to  the  rules 
and  limitations  prescribed  in  the  case  of  a  bill. 

Sec.  VIII. — The  Congress  sliall  have  power — 
^    1.  To  lay  and  collect  taxes,  duties,  imposts  and  excises,  to  pay  the 
'  debts  and  provide  for  the  common  defense  and  general  welfare  of  the 
United  States;  but  all  duties,  imposts  and  excises  shall  be  uniform 
throughout  the  United  States. 

2.  To  borrow  money  on  the  credit  of  the  United  States. 
/-  "3.  To  regulate  commerce  with  foreign  nations,  and  among  the  sev- 
eral States,  and  with  the  Indian  tribes. 

4.  To  establish  an  uniform  rule  of  naturalization,  and  uniform  laws 
on  the  subject  of  bankruptcies  throughout  the  United  States. 

5.  To  coin  money,  regulate  the  value  thereof,  and  of  foreign  coin, 
and  tix  the  standard  of  weights  and  measures. 

6.  To  provide  for  the  punishment  of  counterfeiting  the  securities 
and  current  coin  of  theljnited  States. 

\     7.  To  establish  post  ofBces  and  post  roads. 

8.  To  promote  the  progress  of  science  and  useful  arts,  by  securing 
for  limited  times  to  authors  and  inventors  the  exclusive  right  to  their 
respective  writings  and  discoveries. 

9.  To  constitute  tribunals  inferior  to  the  Supreme  Court. 

10.  To  define  and  punish  piracies  and  felonies  committed  on  the 
high  seas,  and  oflenses  against  the  law  of  nations. 

11.  To  declare  war,  grant  letters  of  marque  and  reprisal,  and  make 
rules  concerning  captures  on  land  and  water. 

13.  To  raise  and  support  armies,  but  no  appropriation  of  money  to 
that  use  shall  be  for  a  longer  term  than  two  years. 

13.  To  provide  and  maintain  a  navy. 

14.  To  make  rules  for  the  government  and  regulation  of  the  land 
and  naval  forces. 

15.  To  provide  for  calling  forth  the  militia  to  execute  the  laws  of 
the  Union,  suppress  insurrections  and  repel  invasions. 

16.  To  provide  for  organizing,  arming,  and  disciplining  the  militia, 


CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA.       17 

and  for  governing  such  part  of  them  as  may  be  employed  in  the  ser- 
vice of  the  United  States,  reserving  to  the  States  respectively,  the 
appointment  of  the  officers,  and  the  authority  of  training  the  militia 
according  to  the  discipline  prescribed  by  Congress. 

17.  To  exercise  exclusive  legislation  in  all  cases  whatsoever,  over 
such  district  (not  exceeding  ten  miles  square)  as  may,  by  cession  of 
particular  States,  and  the  acceptance  of  Congress,  become  the  seat  of 
the  government  of  the  United  States,  and  to  exercise  like  authority 
over  all  places  purchased  by  the  consent  of  the  legislature  of  the 
State  in  which  the  same  shall  be,  for  the  erection  of  forts,  magazines, 
arsenals,  dock-yards,  and  other  needful  buildings;  and 

18.  To  make  all  laws  which  shall  be  necessary  and  proper  for  car- 
rying into  execution  the  foregoing  powers,  and  other  powers  vested 
by  this  Constitution  in  the  government  of  the  United  States,  or  in  any 
department  or  officer  thereof 

Sec.  IX. — 1.  The  migration  or  importation  of  such  persons  as  any 
of  the  States  now  existing  shall  thinkproper  to  admit,  shall  not  be 
prohibited  by  the  Congress  prior  to"  the  year  one  thousand,  eight 
hundred  and  eight,  but  a  tax  or  duty  may  be  imposed  on  such  impor- 
tation, not  exceeding  ten  dollars  for  each  person. 

2.  The  privilege  of  the  writ  of  habeas  corpus  shall  not  be  suspended, 
unless  when  in  cases  of  rebellion  or  invasion  the  public  safety  may 
require  it. 

3.  No  bill  of  attainder  or  ex  post  facto  law  shall  be  passed. 

4.  No  capitation,  or  other  direct,  tax  shall  be  laid,  unless  in  propor- 
tion to  the  census  or  enumeration  hereinbefore  directed  to  be  taken. 

5.  No  tax  or  duty  shall  be  laid  on  articles  exported  from  any  State. 

6.  No  preference  shall  be  given  by  any  regulation  of  commerce  or 
revenue  to  the  ports  of  one  State  over  those  of  another ;  nor  shall  ves- 
sels bound  to,  or  from,  one  State,  be  obliged  to  enter,  clear,  or  pay 
duties  in  another. 

7.  No  money  shall  be  drawn  from  the  treasury,  but  in  consequence 
of  appropriations  made  by  law ;  and  a  regular  statement  aud  account 
of  the  receipts  and  expenditures  of  all  public  money  shall  be  pub- 
lished from  time  to  time. 

8.  No  title  of  nobility  shall  be  granted  by  the  United  States;  and 
no  person  holding  any  office  of  profit  and  trust  under  them,  shall, 
without  the  consent  of  the  Congress,  accept  any  present,  emolument, 
office,  or  title,  of  any  kind  whatever,  from  any  king,  prince,  or  foreign 
State. 

Sec.  X. — 1.  No  State  shall  enter  into  any  treaty,  alliance,  or  con- 
federation;  grant  letters  of  marque  and  reprisal;  coin  money;  emit 
bills  of  credit;  make  anything  but  gold  and  silver  coin  a  tender  in 
payment  of  debts ;  pass  any  bill  of  attainder,  ex  post  facto  law,  or 
impairing  the  obligation  of  contracts,  or  grant  any  title  of  nobility. 

2.  No  State  shall,  without  the  consent  of  the  Congress,  lay  any  im- 
posts or  duties  on  imports  or  exports,  except  what  may  be  absolutely 
necessaiy  for  executing  its  inspection  law;  and  the  net  produce  of  all 
duties  and  imposts',  laid  by  any  State  on  imports  or  exports,  shall  be 
for  the  use  of  the  Treasury  of  the  United  States ;  and  all  such  laws 
shall  be  subject  to  the  revision  and  control  of  the  Congress. 

3.  No  State  shall,  without  the  consent  of  Congress,  lay  any  duty  of 

2 


18       CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA. 

tonnage,  keep  troops,  or  ships  of  war  in  time  of  peace,  enter  into  any 
agreement  or  compact  with  another  State,  or  with  a  foreign  power, 
or  engage  in  war.  unless  actually  invaded,  or  in  such  imminent  dan- 
ger as  will  not  admit  of  delay. 

A.RTICLE   II. 

Section  I. — 1.  The  executive  power  shall  be  vested  in  a  President 
of  the  United  States  of  America.  He  shall  hold  his  office  during  the 
term  of  four  years,  and,  together  with  the  Vice  President,  chosen  for 
the  same  term,  be  elected  as  follows : 

2.  Each  State  shall  appoint,  in  such  manner  as  the  legislature 
thereof  may  direct,  a  number  of  electors,  equal  to  the  whole  number 
of  senators  and  representatives  to  which  the  State  may  be  entitled  in 
the  Congress;  but  no  senator  or  representative,  or  person  holding  an 
ofBce  of  trustor  profit  under  the  United  States,  shall  be  appointed  an 
elector. 

3.  The  electors  shall  meet  in  their  respective  States,  and  vote 
by  ballot  for  two  persons,  of  whom  one  at  least  shall  not  be  an 
inhabitant  of  the  same  State  with  themselves.  And  they  shall 
make  a  list  of  all  the  persons  voted  for,  and  of  the  number  of 
votes  for  each ;  which  list  thej-  shall  sign  and  certify,  and  trans- 
mit sealed  to  the  seat  of  government  of  the  United  States,  directed 
to  the  President  of  the  Senate.  The  President  of  the  Senate  shall , 
in  the  presence  of  the  Senate  and  House  of  Representatives,  open 
all  the  certificates,  and  the  votes  shall  then  be  counted.  The  per- 
son having  the  greatest  number  of  votes  shall  be  the  President,  if 
such  number  be  a  majority  of  the  whole  number  of  electors  ap- 
pomted ;  and  if  there  be  more  than  one  who  have  such  majority, 
and  have  an  equal  number  of  votes,  then  the  House  of  Represen- 
tatives shall  immediately  choose  by  ballot  one  of  them  for  Presi- 
dent ;  and  if  no  person  shall  have  a  majority,  then  from  the  five 
highest  on  the  list  the  said  House  shall  in  like  manner  choose  the 
President.  But  in  choosing  the  President  the  votes  shall  be  taken 
by  States,  the  representation  from  each  State  having  one  vote ;  a 
quorum  for  this  purpose  shall  consist  of  a  member  or  members 
from  two-thirds  of  the  States,  and  a  majority  of  all  the  States 
shall  be  necessary  to  a  choice.  In  every  case,  after  the  choice  of 
the  President,  the  person  having  the  greatest  number  of  votes  of 
the  electors  shall  be  the  Vice  President.  But  if  there  should  re- 
main two  or  more  who  have  equal  votes,  the  Senate  shall  choose 
from  them  the  Vice  President. 

4.  The  Congress  may  determine  the  time  of  choosing  the  electors, 
and  the  day  on  which  they  shall  give  their  votes ;  which  day  shall 
be  the  same  throughout  the  United  States. 

5.  No  person  except  a  natural-born  citizen,  or  a  citizen  of  the  United 
States,  at  the  time  of  the  adoption  of  this  Constitution,  shall  be  eligi- 
ble to  the  office  of  President;  neither  shall  any  person  be  eligible  to 
that  office  w^ho  shall  not  have  attained  to  the  age  of  thirty-five  years, 
and  been  fourteen  years  a  resident  within  the  United  States. 

6.  In  case  of  the  removal  of  the  President  from  office,  or  of  his 
death,  resignation  or  inability  to  discharge  the  powers  and  duties  of 


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CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA.       19 

the  said  office,  the  same  shall  devolve  upoa  the  Vice  President,  and 
the  Congress  may  by  law  provide  for  the  case  of  removal,  death,  res- 
ignation or  inability,  both  of  the  President  and  Vice  President,  declar- 
ing  what  officer  shall  then  act  as  President,  and  such  officer  shall  act 
accordingly,  until  the  disability  be  removed,  or  a  President  shall  be 
■elected. 

7.  The  President  shall,  at  stated  times,  receive  for  his  services,  a 
compensation,  which  shall  neither  be  increased  nor  diminished  dur- 
ing the  period  for  which  he  shall  have  been  elected,  and  he  shall  not 
receive  within  that  period  any  other  emolument  from  the  United 
States,  or  any  of  them. 

8.  Before  he  enter  on  the  execution  of  his  office,  he  shall  take  the 
following  oath  or  affirmation : 

"  I  do  solemnly  swear  (or  affirm)  that  I  will  faithfully  execute  the 
office  of  President  of  the  United  States,  and  will  to  the  best  of  my 
ability,  preserve,  protect  and  defend  the  Constitution  of  the  United 
States." 

Sec.  II. — 1.  The  President  shall  be  the  Commander-in-Chief  of  the 
Army  and  Navy  of  the  United  States,  and  of  the  militia  of  the  several 
States,  when  called  into  the  actual  service  of  the  United  States ;  he 
may  require  the  opinion,  in  writing,  of  the  principal  officer  in  each 
of  the  executive  departments,  upon  any  subject  relating  to  the  duties 
■of  their  respective  offices,  and  he  shall  have  power  to  grant  reprieves 
and  pardons  for  oflFenses  against  the  United  States,  except  in  cases  of 
impeachment. 

2.  He  shall  have  power,  by  and  with  the  advice  and  consent  of  the 
Senate,  to  make  treaties,  provided  two-thirds  of  the  Senate  present 
concur;  and  he  shall  nominate,  and  by  and  with  the  advice  and  con- 
sent of  the  Senate,  shall  appoint  ambassadors,  and  other  public  min- 
isters and  consuls,  Judges  of  the  Supreme  Court,  and  all  other  officers 
of  the  United  States,  whose  appointments  herein  are  not  otherwise 
provided  for,  and  which  shall  be  established  by  law ;  but  the  Con- 
gress may  by  law  vest  the  appointment  of  such  inferior  officers,  as 
they  may  think  proper,  in  the  President  alone,  in  the  courts  of  law, 
or  in  the  heads  of  departments. 

3.  The  President  shall  have  power  to  fill  up  all  vacancies  that  may 
happen  during  the  recess  of  the  Senate,  by  granting  commissions 
which  shall  expire  at  the  end  of  their  next  session. 

Sec.  III.— He  shall  from  time  to  time  give  to  the  Congress  infor- 
mation of  the  state  of  the  Union,  and  recommend  to  their  consider- 
ation such  measures  as  he  shall  judge  necessary  and  expedient;  he 
mav,  on  extraordinary  occasions,  convene  both  houses,  or  either  of 
them,  and,  in  case  of  disagreement  between  them,  with  respect  to  the 
time  of  adjournment,  he  may  adjourn  them  to  such  time  as  he  shall 
think  proper;  he  shall  receive  ambassadors  and  other  public  minis- 
ters; he  shall  take  care  that  the  laws  be  faithfully  executed,  and  shall 
commission  all  the  officers  of  the  United  States. 

Sec.  IV.— The  President,  Vice  President  and  all  civil  officers  of 
the  United  States,  shall  be  removed  from  office  on  impeachment 
for,  and  conviction  of,  treason,  bribery,  or  other  high  crimes  and 
misdemeanors. 


20       CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA. 


Article  III. 

Section  I. — The  judicial  power  of  the  United  States  shall  be 
vested  in  one  Supreme  Court,  and  in  such  inferior  courts  as  the  Con- 
gress may  from  time  to  time  ordain  and  establish.  The  judges,  both 
of  the  Supreme  and  inferior  courts,  shall  hold  their  offices  during 
good  behavior,  and  shall,  at  stated  times,  receive  for  their  services,  a 
compensation,  vphich  shall  not  be  diminished  during  their  continu- 
ance in  office. 

Sec.  II. — 1.  The  judicial  power  shall  extend  to  all  cases,  in  law 
and  equity,  arising  under  this  Constitution,  the  laws  of  the  United 
States,  and  treaties  made,  or  which  shall  be  made,  under  their  author- 
ity; to  all  cases  afiecling  ambassadors,  other  public  ministers  and 
consuls;  to  all  cases  of  admiralty  and  maritime  jurisdiction;  to  con- 
troversies to  which  the  United  States  shall  be  a  party;  to  comroversies 
between  two  or  more  States ;  between  a  State  and  citizens  of  another 
State;  between  citizens  of  dilferent  States;  between  citizens  of  the 
same  State,  claiming  lands  under  grants  of  different  States;  and 
between  a  State,  or  the  citizens  thereof,  and  foreign  States,  citizens  or 
subjects. 

2.  In  all  cases  affecting  ambassadors,  other  public  ministers  and 
consuls,  and  those  in  which  a  State  shall  be  party,  the  Supreme 
Court  shall  have  original  jurisdiction.  In  all  the  other  cases  before 
mentioned,  the  Supreme  Court  shall  have  appellate  jurisdiction,  both 
as  to  law  and  fact,  with  such  exceptions,  and  under  such  regulations 
as  the  Congress  shall  make. 

3.  The  trial  of  all  crimes,  except  in  cases  of  impeachment,  shall 
be  by  jury;  and  such  trial  shall  be  held  in  the  State  where  the  said 
crimes  shall  have  been  committed ;  but  when  not  committed  within 
any  State,  the  trial  shall  be  at  such  place  or  places  as  the  Congress 
may  by  law  have  directed. 

Sec.  III. — 1.  Treason  against  the  United  States,  shall  consist 
only  in  levying  war  against  them,  or  in  adhering  to  their  enemies, 
giving  them  aid  and  comfort.  No  person  shall  be  convicted  of  trea- 
son unless  on  the  testimony  of  two  witnesses  to  the  same  overt  act, 
or  on  confession  in  open  court. 

2.  The  Congress  shall  have  power  to  declare  the  punishment  of 
treason,  but  no  attainder  of  treason  shall  work  corruption  of  blood, 
or  forfeiture  except  during  the  life  of  the  person  attained. 

Article  IV. 

Section  I. — Full  faith  and  credit  shall  be  given  in  each  State  to  the 
public  acts,  records  and  judicial  proceedings  of  every  other  State. 
And  the  Congress  may  by  general  laws  prescribe  the  manner  in 
which  such  acts,  records  and  proceedings  shall  be  proved,  and  the 
effect  thereof. 

Sec.  II. — 1.  The  citizens  of  each  State  shall  be  entitled  to  all 
privileges  and  immunities  of  citizens  in  the  several  States. 

2.  A  person  charged  in  any  State  with  treason,  felony,  or  other 
crime,  who  shall  flee  from  justice,  and  be  found  in  another  State, 


CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA.       21 

shall  on  demand  of  the  executiv'e  authority  of  the  State  from  which 
he  fled,  be  delivered  up  to  be  removed  to  the  State  having  jurisdiction 
of  the  crime. 

3.  No  person  held  to  service  or  labor  in  one  State,  under  the  laws 
thereof,  escaping  into  another,  shall,  in  consequence  of  any  law  or 
regulation  therein,  be  discharged  from  such  service  or  labor,  but 
shall  be  delivered  up  on  claim  of  the  party  to  whom  such  service  or 
labor  may  be  due. 

Sec.  III. — 1.  New  States  may  be  admitted  by  the  Congress  into 
this  Union;  but  no  new  State  shall  be  formed  or  erected  within 
the  jurisdiction  of  any  other  State;  nor  any  State  be  formed  by  the 
junction  of  two  or  more  States,  or  parts  of  States,  without  the  con- 
sent of  the  legislatures  of  the  States  concerned  as  well  as  of  the 
Congress. 

2.  The  Congress  shall  have  power  to  dispose  of  and  make  all 
needful  rules  and  regulations  respecting  the  territory  or  other  prop- 
erty belonging  to  the  United  States;  and  nothing  in  this  Constitution 
shall  be  so  construed  as  to  prejudice  any  claims  of  the  United  States, 
or  any  particular  State. 

Sec.  IV. — The  United  States  shall  guarantee  to  every  State  in  this 
Union  a  republican  form  of  government,  and  shall  protect  each  of 
them  against  invasion ;  and,  on  application  of  the  legislature,  or  of 
the  executive  (when  the  legislature  can  not  be  convened)  against  do- 
mestic violence. 

Article  V. 

The  Congress,  whenever  two-thirds  of  both  houses  shall  deem  it 
necessary,  shall  propose  amendments  to  this  Constitution,  or,  on  the 
application  of  the  legislatures  of  two-thirds  of  the  several  States, 
shall  call  a  conventioiT  for  proposing  amendments,  which,  in  either 
case,  shall  be  valid  to  all  intents  and  purposes,  as  part  of  this  Consti- 
tution, when  ratified  by  the  legislatures  of  three-fourths  of  the  several 
States,  or  by  conventions  in  three-fourths  thereof,  as  the  one  or  the 
other  mode  of  ratification  may  be  proposed  by  the  Congress ;  provided 
that  no  amendment  which  may  be  made  prior  to  the  year  one  thou- 
sand eight  hundred  and  eight  shall  in  any  manner  affect  the  first  and 
fourth  clauses  in  the  ninth  section  of  the  first  article ;  and  that  no 
State,  without  its  consent,  shall  be  deprived  of  its  equal  suffrage  in 
the  Senate. 

Article  VI. 

1.  All  debts  contracted  and  engagements  entered  into,  before  the 
adoption  of  this  Constitution,  shall  be  as  valid  against  the  United 
States  under  this  Constitution,  asunder  the  Confederation. 

2.  This  Constitution,  and  the  laws  of  the  United  States  which 
shall  be  made  in  pursuance  thereof;  and  all  treaties  made,  or  which 
shall  be  made,  under  the  authority  of  the  United  States,  shall  be  the 
supreme  law  of  the  land ;  and  the  judges  in  every  State  shall  be 
bound  thereby,  any  thing  in  the  Constitution  or  laws  of  any  State  to 
the  contrary  notwithstanding. 


22       CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA. 

3.  The  senators  and  representatives  before  mentioned,  and  the 
members  of  the  several  State  legislatures,  and  all  executive  and  judi- 
cial officers,  both  of  the  United  States  and  of  the  several  States  shall 
be  bound  by  oath  or  affirmation,  to  support  the  Constitution ;  but  no 
religious  test  shall  ever  be  required  as  a  qualification  to  any  office  or 
public  trust  under  the  United  States. 

Article  VII. 

The  ratification  of  the  conventions  of  nine  States  shall  be  sufficient 
for  the  establishment  of  this  Constitution  between  the  States  so  rati- 
fying the  same. 

Done  in  convention  by  the  unanimous  consent  of  the  States  present 
the  seventh  day  of  September  in  Ihe  year  of  our  Lord  one  thousand, 
seven  hundred  and  eighty-seven,  and  of  the  Independence  of  the 
United  States  of  America  the  twelfth.  In  witness  whereof,  we 
have  hereunto  subscribed  our  names, 

G":  WASHINGTON, 

President,  and  Deputy  from  Virginia. 

The  Constitution  was  adopted  by  the  Convention  on  the  17tli  of 
September,  1787,  appointed  in  pursuance  of  the  Resolution  of  the 
Confederation  of  the  31st  of  February,  1787,  and  ratified  by  the  Con- 
ventions of  the  several  States,  as  follows  : 

Delaware,  December  7lh,  1787,  unanimously. 

Pennsylvania.  December  12lh,  1787,  by  a  vote  of  46  to  23. 

New  Jersey,  December  I8lh,  1787,  unanimously. 

Georgia.  January  2d,  1788,  unanimously. 

Connecticut,  January  tith,  1788,  by  a  vote  of  128  to  40. 

Massachusetts,  February  6ih,  1788,  by  a  vote  of  187  to  168. 

Maryland,  April  28lh,  1788,  bv  a  vole  of  63  to  12. 

South  Carolina,  May  23d,  1788,  by  a  vote  of  149  to  73. 

New  Hampshire,  June  21sf,  1788,  by  a  vole  of  57  to  47. 

Virginia,  June  25th,  1788.  by  a  vote  of  89  to  79. 

New  York,  July  26lh,  1788,  by  a  vote  of  30  to  25. 

North  Carolina,  November  21st,  1789,  by  a  vote  of  193  to  75. 

Rhode  Island,  May  29th,  1790,  by  a  majority  of  2. 

Vermont,  January  10th,  1791,  by  a  vote  of  105  to  4. 
Declared  ratified  by  resolution  of  the  Congress,  September  13th, 
1788. 

The  first  Congress  under  its  provisions  was  to  have  met  in  New 
York,  March  4th,  1789,  but  on  that  day  no  quorum  was  present 
in  either  House.  The  House  of  Representatives  organized  on  the 
1st  of  April,  and  the  Senate  secured  a  quorum  on  the  6th  of 
April,  1789. 

AMENDMENTS  TO  THE  CONSTITUTION. 

Article  I. 
Congress  shall  make  no  law  respecting  an  establishment  of  religion, 
or  prohibiting  the  free  exercise  thereof;  or  abridging  the  freedom  of 
speech  or  of  the  press;  or  the  right  of  the  people  peaceably  to  assem- 
ble, and  to  petition  the  government  for  a  redress  of  grievances. 


CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA.       23 


Article  II. 

A  well-regulated  militia  being  necessary  to  the  aecurity  of  a  free 
state,  the  right  of  the  people  to  keep  and  bear  arms  shall  not  be 
infringed. 

Article  III. 

No  soldier  shall,  in  time  of  peace,  be  quartered  in  any  house, 
without  the  consent  of  the  owner,  nor  in  time  of  war,  but  in  a  manner 
to  be  prescribed  by  law. 

Article  IV. 

The  right  of  the  people  to  be  secure  in  their  persons,  houses, 
papers,  and  effects,  against  unreasonable  searches  and  seizures,  shall 
not  be  violated,  and  no  warrants  shall  issue  but  upon  probable  cause, 
supported  by  oath  or  affirmation,  and  particularly  describing  the 
place  to  be  searched,  and  the  persons  or  things  to  be  seized. 

Article  V. 

No  person  shall  be  held  to  answer  for  a  capital,  or  otherwise  infa- 
mous  crime,  unless  on  a  presentment  or  indictment  of  a  grand  jury, 
except  iu  cases  arising  in  the  land  or  naval  forces,  or  in  the  militia, 
when  in  actual  service  in  time  of  war  or  public  danger;  nor  shall 
any  person  be  subject  for  the  same  offense  to  be  twice  put  in  jeopardy 
of  life  or  limb;  nor  shall  be  compelled  in  any  criminal  case  to  be  a 
witness  against  himself;  nor  be  deprived  of  life,  liberty  or  property, 
without  due  process  of  law ;  nor  shall  public  property  be  taken  for 
public  use,  without  just  compensation. 

Article  VI. 

In  all  criminal  prosecutions,  the  accused  shall  enjoy  the  right  to 
a  speedy  and  public  trial,  by  an  impartial  jury  of  the  State  and  dis- 
trict wherein  the  crime  shall  have  been  committed,  which  district 
shall  have  been  previously  ascertained  by  law,  and  to  be  informed 
of  the  nature  and  cause  of  the  accusation;  to  be  confronted  with  the 
witnesses  against  him;  to  have  compulsory  process  for  obtaining 
witnesses  in  his  favor,  and  to  have  the  assistance  of  counsel  for  his 
defense. 

Article  VII. 

In  suits  at  common  law,  where  the  value  in  controversy  shall  ex- 
ceed twenty  dollars,  the  right  of  trial  by  jury  shall  be  preserved,  and 
no  fact  tried  by  a  jury  shall  be  otherwise  re-examined  in  any  court  of 
the  United  States,  than  according  to  the  rules  of  the  common  law. 

Article  VIII. 

Excessive  bail  shall  not  be  required,  nor  excessive  fines  imposed, 
nor  cruel  and  unusual  punishments  inflicted. 

Article  IX. 

The  enumeration  in  the  Constitution  of  certain  rights,  shall  not  be 
construed  to  deny  or  disparage  others  retained  by  the  people. 


24      CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA. 


Article  X. 

The  powers  not  delegated  to  the  United  States  by  the  Constitution, 
nor  prohibited  by  it  to  the  States,  are  reserved  to  the  States  respect- 
ively, or  to  the  people. 

Article  XI. 

[Proposed  by  Congress  March  5th,  1794,  and  declared  in  force 
January  8,  1798.J 

The  judicial  power  of  the  United  States  shall  not  be  construed  to 
extend  to  any  suit  in  law  or  equity,  commenced  or  prosecuted  against 
one  of  the  United  States  by  citizens  of  another  State,  or  by  citizens 
or  subjects  of  any  foreign  state. 

Article  XII. 

[Proposed  December  12th,  1803,  in  the  first  session  of  the  Eighth 
Congress,  and  declared  in  force  September  25th,  1804.] 

The  electors  shall  meet  in  their  respective  States,  and  vote  by  ballot 
for  President  and  Vice  President,  one  of  whom,  at  least,  shall  not  be 
an  inhabitant  of  the  same  State  with  themselves;  they  shall  name  in 
their  ballots  the  person  voted  for  as  President,  and  in  distinct  ballols 
the  person  voted  for  as  Vice  President,  and  they  shall  make  distinct 
lists  of  all  persons  voted  for  as  President,  and  of  all  persons  voted  for 
as  Vice  President,  and  of  the  number  of  votes  for  each,  which  lists 
they  shall  sign  and  certify,  ana  transmit  sealed  to  the  seat  of  the 
government  of  the  United  States,  directed  to  the  President  of  the 
Senate ; — The  President  of  the  Senate  shall,  in  the  presence  of  the 
Senate  and  House  of  Representatives,  open  all  the  certificates  and 
the  votes  shall  then  be  counted; — the  person  having  the  greatest 
number  of  votes  for  President,  shall  be  President,  if  such  number  be 
a  majority  of  the  whole  number  of  electors  appointed ;  and  if  no 
person  have  such  majority,  then  from  the  persons  having  the  highest 
numbers  not  exceeding  three  on  the  list  of  those  voted  for  as  Presi- 
dent, the  House  of  Representatives  shall  choose  immediately,  by  bal- 
lot, the  President.  But  in  choosing  the  President,  the  votes  shall  be 
taken  by  States,  the  representation  from  each  State  having  one  vote; 
a  quorum  for  this  purpose  shall  consist  of  a  member  or  members 
from  two-thirds  of  the  States,  and  a  majority  of  all  the  States  shall 
be  necessary  to  a  choice.  And  if  the  House  of  Representatives  shall 
not  choose  a  President  whenever  the  right  of  choice  shall  devolve 
upon  them,  before  the  fourth  day  of  March  next  following,  then  the 
Vice  President  shall  act  as  President,  as  in  the  case  of  the  death  or 
other  constitutional  disability  of  the  President.  The  person  having 
the  greatest  number  of  votes  as  Vice  President,  shall  be  the  Vice 
President,  if  such  number  be  a  majority  of  the  whole  number  of 
electors  appointed,  and  if  no  person  have  a  majority,  then  Irom 
the  two  hiahest  members  on  the  list  the  Senate  shall  choose  the 
Vice  President;  a  quorum  for  the  purpose  shall  consist  of  two-thirds 
of  the  whole  number  of  senators,  and  a  majority  of  the  whole  number 
shall  be  necessarj^  to  a  choice.  But  no  person  constitutionally  inel- 
igible to  the  office  of  President  shall  be  eligible  to  that  of  President 
of  the  United  States. 


CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA.      25 


AUTICLE  XIII. 

[Proposed  by  Congress  February  1st,  1865,  and  declared  in  force 
December  18th,  1865. 

Ratified  by  Arkansas,  California,  Connecticut,  Florida,  Georgia, 
Illinois  Indiana,  Iowa,  Kansas,  Louisiana,  Maine,  Maryland,  Massa- 
chusetts, Michigan,  Minnesota,  Missouri,  Nevada,  New  Hampshire, 
New  Jersey,  New  York,  North  Carolina,  Ohio,  Oregon,'Pennsylvania, 
Rhode  Island,  South  Carolina,  Tennessee,  Vermont,  Virginia,  West 
Virginia,  and  Wisconsin — 32  States  out  of  36.  Ratified  conditionally 
by  Alabama  and  Mississippi.  Rejected  by  Delaware  and  Kentucky 
— 2.     Not  acted  upon  by  Texas.] 

Section  1.  Neither  slavery  nor  involuntary  servitude,  except  as 
a  punishment  for  crime  whereof  the  party  shall  have  been  duly  con- 
victed, shall  exist  within  the  United  States,  or  any  place  subject  to 
their  jurisdiction. 

Sec.  2.  Congress  shall  have  power  to  enforce  this  Article  by  ap- 
propriate legislation.  - 

Article  XIV. 

[Proposed  by  Congress  June  16th,  1866,  and  declared  in  force  July, 
1868. 

Ratified  by  Alabama,  Arkansas,  Connecticut,  Florida,  Georgia, 
Illinois,  Indiana,  Iowa,  Kansas,  Louisiana,  Maine,  Massachusetts, 
Michigan,  Minnesota,  Mississippi,  Missouri,  Nebraska,  Nevada,  New 
Hampshire,  New  Jersey,  New  York,  North  Carolina,  Ohio,  Oregon, 
Pennsylvania,  Rhode  Island,  South  Carolina,  Tennessee,  Texas,  Ver- 
mont, Virginia,  West  Virginia  and  Wisconsin — 33  States  out  of  37. 

Of  the  above,  Arkansas,  Florida,  Georgia,  Louisiana,  Mississippi, 
North  Carolina,  South  Carolina,  Texas  and  Virginia  (9)  first  rejected 
the  amendment,  but  finally  ratified  it.  New  Jersey  and  Ohio  (2) 
rescinded  their  ratification. 

Rejected  by  Delaware,  Kentucky  and  Maryland— 3. 

No  final  action  was  taken  by  California — 1.] 

Section  I.  All  persons  born  or  naturalized  in  the  United  States, 
and  subject  to  the  jurisdiction  thereof,  are  citizens  of  the  United 
States,  and  of  the  State  wherein  they  reside.  No  State  shall  make 
or  enforce  any  law  which  shall  abridge  the  privileges  or  immunities 
of  citizens  of  the  United  States;  nor  shall  any  State  deprive  any  per- 
son of  life,  liberty,  or  property,  without  due  process  of  law;  nor  deny 
to  any  person  within  its  jurisdiction  the  equal  protection  of  the  laws. 

Sec.  2.  Representatives  shall  be  apportioned  among  the  several 
States  according  to  their  respective  numbers,  counting  the  whole 
number  of  persons  in  each  State,  excluding  Indians  not  taxed.  But 
when  the  right  to  vote  at  any  election  for  the  choice  of  electors  for 
President  and  Vice  President  of  the  United  States,  representatives  in 
Congress,  the  executive  and  judicial  oflScers  of  a  State,  or  the  mem- 
bers of  the  legislature  thereof,  is  denied  to  any  of  the  male  inhabit- 
ants of  such  State,  being  twenty-one  years  of  age,  and  citizens  of  the 
United  States,  or  in  any  way  abridged,  except  for  participation  in 


26       CONSTITUTION  OF  THE  UNITED  STATES  OF  AMERICA. 

rebellion,  or  other  crime,  the  basis  of  representation  therein  shall  be 
reduced  in  the  proportion  which  the  number  of  such  male  citizens 
shall  bear  to  the  whole  number  of  male  citizens  twenty-one  years  of 
age  in  such  State. 

Sec.  3.  No  person  shall  be  a  senator  or  representative  in  Congress, 
or  elector  of  President  and  Vice  President,  or  hold  any  office,  civil  or 
military,  under  the  United  States,  or  under  any  Stale,  who,  having 
previously  taken  an  oath  as  a  member  of  Congress,  or  as  an  officer  of 
the  United  States,  or  as  a  member  of  any  State  legislature,  or  as  an 
executive  or  judicial  officer  of  any  State,  to  support  the  Constitution 
of  the  United  States,  shall  'have  engaged  in  insurrection  or  rebellion 
against  the  same,  or  given  aid  or  comfort  to  the  enemies  thereof. 
But  Congress  may,  by  a  two-thirds  vote  of  each  house  remove  such 
disability. 

Sec.  4.  The  validity  of  the  public  debt  of  the  United  States,  author- 
ized by  law,  including  debts  incurred  for  payment  of  pensions  and 
bounties  for  services  in  suppressing  insurrection  or  rebellion,  shall 
not  be  questioned.  But  neither  the  United  States  nor  any  State  shall 
assume  or  pay  any  debt  or  obligation  incurred  in  aid  of  insurrection 
or  rebellion  against  the  United  States,  or  any  claim  for  the  loss  or 
emancipation  of  any  slave ;  but  all  such  debts,  obligations  and  claims 
shall  be  held  illegal  and  void. 

Sec.  5.  The  Congress  shall  have  power  to  enforce,  by  appropriate 
legislation,  the  provisions  of  this  Article. 

Article  XV. 

[Proposed  by  Congress  February  26th,  1869,  and  declared  in  force 
March  30th,  1870. 

Ratified  by  Alabama,  Arkansas,  Connecticut,  Florida,  Georgia, 
Illinois,  Indiana,  Iowa,  Kansas,  Louisiana,  Maine,  Massachusetts, 
Miciiigan,  Minnesota,  Mississippi,  Missouri,  Nebraska,  Nevada, 
New  Hampshire,  New  York,  North  Carolina,  Ohio,  Pennsylvania, 
Rhode  Island,  South  Carolina,  Texas,  Vermont,  Virginia,  West  Vir- 
ginia, and  Wisconsin — 30  States  out  of  37. 

Of  the  above,  Georgia  and  Ohio  at  first  rejected  but  finally  ratified. 
New  York  rescinded  its  ratification. 

Rejected  by  California,  Delaware,  Kentucky,  Maryland,  New  Jer- 
sey, and  Oregon  —6. 

No  final  action  was  taken  by  Tennessee — l.J 

Section  1.  The  right  of  citizens  of  the  United  States  to  vote  shall 
not  be  denied  or  abridged  by  the  United  States  or  by  any  State  on 
account  of  race,  color,  or  previous  condition  of  servitude. 

Sec.  2.  The  Congress  shall  have  power  to  enforce  this  article  by 
appropriate  legislation. 

Note.— Another  proposed  amendment,  styled  Article  XIII.,  was  proposed  by 
Congress  to  the  State  legislatures  at  the  second  session  of  Ihe  36th  Congress, 
March  2d,  1861: 

"Art.  XIII.— No  amendment  shall  be  made  to  the  Constitution  which  will 
authorize  or  give  to  Congres?  the  power  to  abolish  or  interfere  within  any  State 
with  the  domestic  institutions  thereof,  including  that  of  persons  held  to  labor  or 
service  by  the  laws  of  said  State." 

It  was  not  acted  upon  by  a  majority  of  the  States. 


LABOR  AND  FINANCE  REVOLUTION. 


CHAPTER  I. 

THE  COMING  REVOLUTION. 

The  world  has  always  contained  two  classes  of  people, 
one  that  lived  by  honest  labor  and  the  other  that  lived 
off  of  honest  labor. 

In  early  times  the  former  had  fixed  habitations,  occu- 
pied their  time  in  tilling  the  soil  and  raising  flocks  and 
herds.  They  provided  for  their  own  wants;  they  had 
few  incentives  to  crime  and  violence. 

They  were  governed  more  by  their  natural  instincts 
of  justice,  and  respect  and  attachment  for  one  another, 
than  by  arbitrary  rules,  hence  their  government  was  sim- 
ple, democratic  and  inexpensive. 

The  other  class  consisted  of  roving  bandits,  who  band- 
ed together  under  chiefs  or  leaders,  and  subsisted  by 
swooping  down  upon  and  plundering  the  peaceful  herd- 
ers. 

After  years  of  marauding,  a  band,  strong  enough, 
would  select  a  certain  territory,  rich  in  products  and 
producers,  overcome  and  subdue  the  people  and  then  di- 
vide the  spoils  between  themselves  according  to  rank. 
^  Each  brigand  had  his  portion  of  the  territory  set  off 
to  himself,  and  each  was  invested  with  a  title  to  nobility 
according  to  rank,  and  possessions,  and  clothed  with  au- 
thority to  exact  from  each  of  his  serfs,  or  tenants,  such 

37 


28  LABOR    AND    FINANCE    REVOLUTION. 

contributions  as  the  robber  chief  and  his  council  might 
determine. 

The  chief  became  "  monarch,"  his  brigands  "  nobility," 
and  thus  was  royalty  and  aristocracy  established.  That 
aristocracy  might  be  limited  to  the  royal  few,  and  not 
be  lost  and  diffused  among  the  plebian  masses,  the  law 
of  primogeniture  was  established,  entailing  upon  the 
eldest  son  of  each  noble,  the  exclusive  right  to  inherit 
the  estates  and  title  of  the  father. 

The  throne  of  England  was  established  by  the  chief 
of  a  Norman  banditti,  her  titles  of  nobility  inheri-ted 
from  freebooters,  and  her  soil  wrenched  from  its  right- 
ful owners  whom  they  reduced  to  serfdom,  as  the  curfew 
bell  proclaimed  the  "  Divine  right"  of  robber  rule. 

Thus  did  bands  of  ruffians  parcel  out  the  world,  di- 
vide it  into  dominions,  and  establish  thrones  on  an  as- 
sumption of  power,  for  their  own  personal  aggrandize- 
ment. 

They  considered  the  conquered  not  as  prisoners,  or 
citizens,  but  as  property  whose  toil  and  products  be- 
longed to  them  and  not  to  the  conquered. 

As  civilization  advanced,  and  robbery  became  obnox- 
ious to  the  more  sensitive  and  refined  intelligence  of  the 
age,  as  royalty  became  ashamed  of  its  ancestry,  its  suc- 
cessors have  attempted  to  obliterate  the  history  of  its 
beginning  by  assuming  new  relations  to  the  balance  of 
humanity,  and  new  appearances  to  cut  off"  the  entail  of 
its  disgrace,  while  its  principles  and  its  objects  remain 
the  same. 

What  was  originally  plunder,  has  assumed  the  softer 
names  of  revenue  and  rent^  and  the  powers  which 
royalty  usurped,  it  affects  to  inherit. 

Thus  was  monarchy  in  Europe  established,  the  divine 


THE    COMING    KEVOLUTION.  29 

right  to  rule  inherited,  and  the  titles  of  nobility  origi- 
nated. 

'^  The  same  two  classes  exist  to-day,  as  of  old,  both  in 
Europe  and  America.  We  have  the  toiling,  tax-paying 
producers,  and  the  idle,  non-taxed,  who  absorb  the  fat 
of  the  land  without  labor. 

^^The  valleys  of  this  grand  republic,  with  their  unpar- 
alleled resources,  and  their  millions  of  industrious,  in- 
telligent toilers,  afford  tempting  inducements  to  the 
avarice  of  civilized  brigandage.  But  instead  of  collect-- 
ing  their  horsemen,  they  collect  lobbies,  and  marshal 
them  against  state  and  national  legislatures.  Instead  ot 
captains,  they  select  lawyers.  Instead  of  mail  and 
spear  they  use  statutes.  Instead  of  scooping  up  the 
wealth  of  the  valleys  and  leaving  the  peasants  free,  mod- 
ern brigandage  demands  the  increase  for  the  next  cen- 
tury, and  has  set  guards  of  law  to  enforce  its  delivery. 
They  craved  fifteen  hundred  millions  of  interest  spoil, 
and  drew  it  with  the  war  debt,  which  need  not  have  been 
a  debt. 

"  Their  greed  grows  with  their  wealth,  and  their  avarice 
intensities  with  their  success,  and  craving  three  thou- 
sand millions  more,  they  have  saddled  the  levy  upon  labor 
by  their  damnable  funding  scheme.  Not  yet  satisfied,  but 
fearing  to  create  alarm  and  revolt  among  their  dupes, 
they  have  doubled  the  levy  by  depreciating  values  and 
doubling  the  purchasing  power  of  the  levy. 

/^  The  English  brigands  practice  a  slightly  different 
method  of  robbery.  There  are  thousands  of  them,  but 
we  will  give  a  few  as  examples.  Their  system  is  that 
of  pensions  and  annuities.  Under  the  pretense  of  loan- 
ing to  the  government,  a  boss  robber,  for  some  trivial 
consideration,  is  allowed  a  perpetual  annual  income  for 


30  LABOR    AND    FINANCE    REVOLUTION. 

himself  and  his  heirs  for  all  time  to  come,  which  labor  and 
its  posterity  are  compelled  to  pay,  thus  establishing  two 
classes,  the  nobility  who  feast  and  fatten  oft'  of  labor 
through  their  annuities,  and  the  serf,  or  toiler,  who  is 
compelled  to  clothe  himself  in  rags  that  the  noble  rob- 
ber may  dress  in  purple. 

There  is  another  class  whose  nobility  is  based  upon 
their  pensions.  These  pensions  are  hereditary,  and 
many  of  them  date  back  to  the  reign  of  Charles  II. 
Very  few  people  in  England  have  any  idea  of  the  extent 
of  the  pension  list  in  that  country.  A  pension  of  £4,000 
a  year  was  allowed  by  Charles  II.  to  Sir  L.  Charges  and 
his  heirs.  This  pension  has  been  held  for  over  two 
hundred  years,  and  is  annually  paid  to  the  heirs.  The 
yearly  pensions  of  a  few  of  the  nobility  are  as  follows: 

Earl  Nelson,  per  annum $17,000 

Lord  Rodney 5,000 

Duke  of  Wellington 20,000 

Viscount  Eversby 20,000 

Lord  Pagent 6,000 

W.  G.  Romaine 5,000 

C.V.  Villien 6,000 

S.  H.  Walpole 10,000 

Viscount  Exmouth  has  held  a  pension  of  $10,000  per 
annum  for  sixty-four  years.  Viscount  St.  Vincent  was 
allowed  a  pension  of  $15,000  in  1606.  In  the  duke  of 
Marlborough's  name  stands  a  pension  of  $22,000  per 
annum,  granted  in  1710,  which  has  cost  England 
$2,360,000.  The  heirs  of  the  duke  of  Schomberg  have 
been  drawing  a  pension  of  $20,000  a  year  ever  since 
1695.  This  was  granted  for  no  service  or  consideration 
to  the  government  or  the  people  of  England  who  are 
now  taxed  to  pay  it,  but  simply  because  Schomberg  was 
a  personal  friend  of  King  William  III. 

Thus  did  the  brigands  of  the  past  seize  sovereign 


THE    COMING    REVOLUTION.  31 

power,  and  parcel  out  to  one  another  and  their  heirs  and 
assigns  forever,  royal  pensions  to  be  collected  from  the 
toil  and  blood  of  the  peasantry. 

Every  title  of  nobility  in  England  has  a  pension  be- 
hind it,  conferred  upon  some  ancestor  as  a  share  of  the 
spoils,  when  ancient  brigandism  declared  itself  the  no- 
bility and  pensioned  their  posterity  upon  the  toil  of  un- 
born generations  of  plebians  and  serfs.  The  English 
system  of  high-toned  robbery  varies  slightly  from  the 
one  being  inaugurated  in  America,  but  the  principle, 
the  object,  and  the  results  are  identical.  The  object  of 
both  is  to  establish  an  idle,  untaxed  aristocracy  of 
wealth,  accumulated  through  incomes  not  earned  by 
those  who  receive  them,  but  filched  from  labor  without 
consideration. 

/  That  which  was  called  robbery  and  plunder  in  old 
times,  is  called  usury  and  taxation  to-day.  The  robl)er 
castles  have  given  away  to  banking  houses  and  boards  of 
trade.  While  the  brigand  has  assumed  the  title  of 
financier,  and  exchanged  his  battle  ax  for  bonds,  and  his 
shield  and  armor  for  special  legislation. 

The  depredations  of  civilized  brigandry  are  as  de- 
structive to  the  peace  and  happiness  of  society  as  were 
those  of  their  barbarous  predecessors.  Death  by  the 
bludgeon  and  the  lance  of  the  freebooters  was  no  more 
deadly  than  is  that  produced  by  want,  starvation  and 
suicide;  while  the  colossal  fortunes  amassed  by  usury, 
rents,  the  contraction  and  appreciation  of  money,  are 
no  less  the  results  of  robbery,  than  were  the  accumula- 
tion of  the  ancient  banditti  by  plunder.  It  matters  but 
little  by  what  process  the  few  untaxed  idlers  manage  to 
get  possession  of  the  wealth  products  of  the  toilers  it  is 
the  result  that  constitutes  the  crime,  and  not  the  name 
given  to  the  process. 


32  LABOR    AND    FINANCE   REVOLUTION. 

During  the  last  twelve  years  a  hundred  thousand  men 
and  firms  have  been  ruined  financially,  and  over  sixteen 
hundred  million  of  dollars  wrenched  from  them  by 
bankruptcy  and  the  shrinkage  of  values,  while  those  who 
have  been  able  to  stand  under  the  pressure,  find  the 
value  of  their  possessions  dwindled  to  one-third  their 
real  worth,  that  the  swallowing  process  may  be  made 
easy,  when  confidence  in  resumption  shall  enable  the 
money  sharks  to  open  their  bank  inflation  throats  to 
gulp  down  what  remains.  Governments,  whether  mo- 
narchial  or  representative,  are  but  faro  tables  for  gam- 
blers, and  the  people  are  the  dupes  of  the  games,  and  it 
will  be  so  until  the  masses  become  more  intelligent  in 
public  matters,  less  partisan  in  their  prejudices,  and 
command  their  servants  in  high  places,  instead  of  being 
controlled  and  blindly  led  by  them. 

Our  pilgrim  fathers  fled  from  the  religious  intoler- 
ance and  persecutions  of  Old  England,  and  bore  patient- 
ly the  dangers  and  privations  of  the  wilderness,  to  enjoy 
the  liberty  of  hanging  witches,  banishing  Baptists  and 
whippiug  Quakers  in  I^ew  England. 

Our  patriotic  fathers  of  '76  fought  seven  long  years  to 
defend  and  establish  the  equal,  inalienable  rights  of  all 
men  to  life,  liberty  and  the  pursuits  of  happiness;  then 
celebrated  their  success,  and  sealed  their  blood-bought 
victories  by  riveting  the  chains  of  bondage  on  the  limbs 
and  souls  of  millions  of  their  battle-scarred  companions. 

A  century  passed  away  before  the  law  recognized  the 
patriotic  professions  of  its  makers,  and  even  this  con- 
cession was  wrung  out  of  the  blood-stained  garments  of 
thousands  who  fell  at  the  feet  of  the  bondsmen  in  their 
efforts  to  include  them  also  in  the  inventory  of  "  all 
men." 


THE    COMING    REVOLUTION.  33 

In  this  country  revolutions  have  consisted  in  bloody- 
struggles  to  establish  in  practice,  and  in  fact,  such  meas- 
ures and  principles  as  a  previous  revolution  had  declared 
in  theory  to  be  right  and  just. 

To-day  we  are  living  under  laws,  and  are  governed  by 
systems,  social,  political  and  financial,  as  much  at  vari- 
ance with  the  essence  and  spirit  of  the  constitution, 
under  which  they  were  enacted,  as  was  the  institution 
of  slavery  with  the  spirit  of  the  Declaration  of  Inde- 
pendence. 

The  preamble  to  the  constitution  which  was  designed 
as  a  brief  interpretation  of  its  spirit,  declares  that  it 
was  ordained  and  established  '■^  For  the  purpose  of  trans- 
mitting to  posterity  the  blessings  of  liberty^  to  establish 
justice,  to  insure  clomestiG  tranquility^  and  to  promote 
the  general  welfare  P''   ' 

To  secure  the  benefits  of  these  pledges,  and  to  enjoy, 
in  fact,  the  privileges  and  rights  thus  declared  to  be 
man's  inheritance,  are  the  important  and  just  demands 
which  will  precipitate  the  pending  revolution. 

Whether  this  revolution  shall  be  characterized  by  the 
blood  stains  and  heart  aches  which  mark  the  pathway 
of  its  predecessors,  depends  upon  the  means  used  by 
avarice,  greed,  ambition  and  selfishness,  to  deprive  the 
present  generation  of  their  inalienable  rights,  and  pos- 
terity of  its  patrimony. 

What  is  that  liberty  which  the  present  policy  of  our 
law  makers  has  in  store  for  posterity? 

The  soil,  the  parent  of  humanity,  from  whose  breast  all 
substance  must  come — the  green  earth,  which  God  filled 
with  goodness  and  gave  to  all  His  children  as  an  inher- 
itance jointly  and  in  common,  -has  been  usurped  by 
avarice  and  greed,  whose  heirs  will  hold  it  to  purchase 
3 


3-i  LABOE   AND   FINANCE   KEYOLUTION. 

tlie  toil  of  unborn  generations  as  effectual] j  as  the  title 
to  the  mother  carried  with  it  the  services  and  life-long 
toil  of  every  dark  son  and  daughter  of  the  South. 

This  is  not  all.  Posterity  has  not  only  been  robbed 
of  its  rights  to  the  soil,  compelling  it  to  enter  the  world 
a  pauper  and  a  trespasser  in  law,  but  a  burden  is  being 
prepared  to  hang  about  its  neck  in  the  form  of  an  im- 
mortalized public  debt,  whose  interest-fetters  will  bind 
its  limbs  and  forever  deprive  it  of  the  liberty  our  fathers 
enjoined  upon  us  to  transmit  to  those  who  should  come 
after  us. 

The  present  generation  has  an  undoubted  right  to 
contract  debts  of  its  own,  and  to  clothe  the  law  with 
power  to  collect  them,  if  it  chooses  to  do  so;  but  what 
unborn  soul  has  authorized,  or  by  what  right  do  we 
authorize  Cono-ress  to  control  and  take  away  the  free- 
dom  of  posterity,  and  impose  upon  coming  generations 
conditions  and  burdens  wdio  were  not  here  to  give  or 
withhold  their  consent? 

^  The  coming  revolution  will  break  every  fetter  forged 
for  posterity,  and  transmit  to  it  the  blessing  of  liberty 
as  required  by  the  constitution  and  the  laws  of  God. 

"  To  establish  justice,"  is  another  object  that  will  be 
contended  for  by  the  coming  revolution.  Uniform  tax- 
ation, every  person  and  interest  to  pay  for  the  support 
of  the  government  just  in  proportion  to  the  amount  of 
protection  required,  and  benefits  conferred. 

The  abolition  of  all  laws  creating  monopolies,  and 
granting  special  privileges,  and  the  establishment  of 
such  as  will  insure  to  labor  and  enterprise  the  full  ben- 
efit and  enjoyment    of  the  fruits  of  their  toil. 

Usury  will  be  shorn  of  its  power  to  rob,  and  usurers 
pass  into  history  as  the  law-protected  brigands  of  a 
darker  age. 


THE    COMING    REVOLUTION.  35 

Then,  when  the  medium  of  commercial  exchano-es 
shall  be  wrested  from  the  control  of  the  usurer,  and 
restored  to  its  legitimate  service  as  a  hand-maid,  and 
not  a  robber  of  labor — and  when,  by  the  establishment 
of  justice,  the  wealth  products  of  labor  shall  be  equitably 
distributed  among  their  producers,  domestic  tranquil- 
ity will  then,  and  not  till  tlien,  be  insured. 

All  of  which  will  tend  ''  to  promote  the  geney^al  wel- 
fare.'''' 

That  this  revolution  will  come,  and  that  these  ends 
wall  be  accomplished,  is  as  certain  as  that  they  were 
recognized  by  our  fathers  as  rvjht,  and  bequeathed  to 
this  generation  under  the  blood  seal  of  the  revolution 
of  1776,  as  a  joint  inheritance. 

That  it  is  at  onr  doors,  is  evident  from  the  numbers 
and  earnestness  of  those  demanding  it,  represented  by 
the  million  votes  cast  at  the  recent  elections. 

May  it  be  bloodless,  and  wronght  by  a  substitution 
of  ballots  for  the  bullets  of  its  predecessors.  But  let  it 
come. 

Nothing  short  of  a  radical  and  absolute  financial  rev- 
olution will  meet  the  demands  of  the  age.  The  day  of 
patch-work  reform,  and  relief  measures  under  a  system 
based  on  robbery  and  oppression,  has  passed.  The 
financial  and  monarchical  systems  of  Christendom  are 
twin-sisters,  each  dependent  upon  the  other  for  exist- 
ence; in  fact,  each  is  but  part  of  a  perfect  whole,  which, 
when  united,  constitute  tyranny  in  the  most  absolute 
and  oppressive  form.  AVithout  the  "  money  of  the 
world,"  the  monarchies  of  the  world  could  not  endure 
for  a  generation,  and  that  rej^ublic  which  adopts  the 
monarchical  financial  system  can  remain  such  only  in 
name.  It  may  have  the  form  of  a  republic,  but  it  will 
possess  the  soul  of  a  tyrant. 


36  LABOR   AND    FINANCE    REVOLUTION. 

The  revolution  of  '76  is  not  yet  completed.  The  true 
republic  is  not  yet  born.  Tlie  eflbrts  of  our  fathers, 
like  those  of  too  many  of  the  present  day,  were  for  re- 
form, simply.  They  appealed  for  a  redress  of  grievances. 
The  blood  that  flowed  at  Lexington,  Concord  and  Bunker 
Hill  was  not  for  liberty  and  independence,  but  for  tem- 
porary relief.  The  war  of  the  revolution  was  not  at 
first  waged  against  the  system  of  monarchy,  but  against 
the  severity  of  the  monarch. 

It  was  not  to  break  or  remove  the  yoke  of  the  king,  but 
to  lighten  its  pressure,  and  not  until  they  found  that  all 
their  eftorts  were  futile  did  the  most  venturesome  mind 
dare  to  strike  at  the  root  of  the  evil,  and  declare  for  a 
government  by  the  people.  Those  were  times  that  not 
only  tried  men's  souls,  but  tested  their  wisdom,  their 
patriotism,  and  their  statesmanship.  They  traced  the 
cause  of  their  sufferings  back  of  parliament,  to  the 
crown.  They  traced  it  to  a  system  of  government 
based  upon  injustice,  and  supported  by  oppression. 
They  saw  that  redress  and  relief,  under  such  a  system, 
would  be  but  temporary  patch-work.  They  resolved  to 
strike  at  what  they  deemed  the  great  tap  root  of  the  evil, 
and  emancipate  themselves  from  the  rule  of  hereditary 
tyrants,  for  throughout  the  world  they  saw  misery  and 
monarchy  marching  hand  in  hand,  and  inspired  by  a 
nobler  spirit  than  had  before  animated  a  people  they 
cried  aloud:  "  O,  ye  that  love  mankind!  Ye  that  dare 
oppose,  not  only  the  tyranny  but  the  tyrant,  stand 
forth!  Every  spot  of  the  old  w^orld  is  overrun  with 
oppression.  Freedom  hath  been  hunted  round  the 
globe,  Asia  and  Africa  have  long  since  expelled  her,, 
and  Europe  regards  her  au  alien  and  a  stranger.  Let 
America  receive  the  fugitive,  and  prepare  in  time  an 
asylum  for  the  oppressed  of  earth." 


THE   COMING    REVOLUTION.  37 

When  told  that  reconciliation  and  relief  nnder  the 
protection  of  the  crown  was  the  wisest  policy,  they  cited 
the  cruelties  and  the  inhumanities  inflicted  upon  them  by 
the  crown.     The  writer  of  the  crisis  said: 

"  Hath  your  house  been  burnt? 

"  Hath  your  property  been  destroyed  before  your  face? 

"  Are  your  wife  and  children  destitute  of  a  bed  to  lie 
on,  or  bread  to  live  on? 

•'  Have  you  lost  a  parent  or  a  child  by  the  tyrant's 
liand,  and  you  the  wretched  ruined  survivor? 

"  H'  you  have  not,  tlien  you  are  not  a  judge  of  those 
•who  have.  But  if  vou  have,  and  can  still  shake  hands  with 
the  murderers,  then  are  you  unworthy  of  the  name  of 
husband,  father,  brother  or  lover,  and  whatever  may  be 
jour  rank  or  title  in  life,  you  have  the  heart  of  a  coward, 
and  the  spirit  of  a  sycophant." 

Another  inconsistency  of  a  government  by  the  people 
was  the  long-cherished  custom  of  centralizinc;  or  mate- 
rializing  sovereignty  in  some  one  individual  to  be  exer- 
cised for  the  masses.  It  was  tauntingly  asked:  "  What 
will  be  your  king  in  the  Republic?"  and  the  answer 
was : 

"  I'll  tell  you,  friend,  he  reigns  above,  and  doth  not 
make  havoc  of  mankind  like  the  royal  brute  of  Britain. 
yet  that  we  may  not  appear  defective  even  in  earthly 
honors,  let  a  day  be  solemnly  set  apart  for  proclaiming 
the  charter;  let  it  be  brought  forth,  placed  on  the  divine 
law — the  AVord  of  God ;  let  a  crown  be  placed  thereon, 
by  which  the  world  may  know  that  so  far  as  we  approve 
of  a  monarch  in  America  the  law  is  'king.'''' 

Our  fathers  supposed  that  when  they  had  thrown  ofl' 
the  yoke  of  King  George,  they  had,  as  far  as  they  were 
concerned,  dethroned  the  tyrant.     They  looked  over  the 


o«^ 


38  LABOR    AND    FINANCE    REVOLUTION. 

world,  and  saw  misery,  poverty  and  degredation  among 
the  tax-burdened  and  royally  oppressed  people,  and  nat- 
urally attributed  man's  hard  lot  to  the  tyranny  of  mon- 
archs,  and  the  lack  of  self-government  among  the 
masses. 

But  the  light  of  a  century  has  disclosed  the  fact  that 
away  back  of  the  monarch,  in  his  gilded  den,  sits  the  real 
tyrant,  Avarice.  That  monarchical  governments,  the 
tyranny  of  kings,  and  the  hereditary  succession  of  power, 
are  simply  outgrowths  of  an  underlying  system  of  rob- 
bery so  old  that  it  is  revered,  and  so  popular  that  at  the 
communion  table  of  Christendom  it  is  given  the  seat  of 
honor.  Gold  for  money,  that  usury  may  rob,  is  the  cor- 
ner stone  of  every  throne  in  Europe,  and  the  foundation 
of  the  political  rings  which  rule,  oppress,  and  rob  the  in- 
dustries of  the  republic.  When  our  fathers  cast  off  the 
British  yoke,  they  kept  the  yoke- maker,  and  set  him  up 
in  business.  Specie  basis,  and  the  inevitable  debt  sys- 
tem for  nsury,  is  the  arch  tyrant  which  is  oppressing 
and  crushing  humanity  to-day.  This  is  the  monster 
which  must  be  dethroned,  and  his  scepter  broken.  "With 
our  fathers  let  us  say:  "  0,  ye  that  love  mankind,  ye  that 
dare  oppose,  not  only  the  tyranny,  but  the  tyrant,  stand 
forth!  Every  spot  in  the  old  world  is  overrun  with  the 
oppressions  of  specie  basis  and  usury.  It  has  driven 
freedom  from  the  habitations  of  civilization,  and  Christi- 
anity from  Christendom.  Let  us  receive  these  fugitives, 
and  with  an  exchange  medium  of  intelligence,  and  a 
nobler  civilization,  that  which  struck  the  manacles  from 
the  limbs  of  African  slavery,  prepare  an  asylum  for  the 
oppressed  of  all  nations;  and  when  the  worshipers  of  the 
golden  tyrant  tauntingly  ask,  "What's  your  fiat  basis?"' 
tell  them  it  is  intelligence  and  popular  sovereignty,  with 


THE    COMING    REVOLUTION.  39 

God's  green  earth,  and  the  fullness  thereof  as  collaterals. 

And  when  unlimited  coinage  and  silver  bill  compro- 
mises are  claimed  to  be  ample  panaceas  for  the  ills  we 
have  been  and  are  suffering,  put  the  questions  which 
patriotism  put  to  Toryism  in  1776. 

Have  you  lost  your  home? 

Has  your  property  been  sacrificed  before  your  face, 
under  the  sheriff's  hammer? 

Has  your  fortune  been  swept  away  by  the  shrinkage 
of  values? 

Has  your  business  been  ruined,  and  your  children 
made  beggars? 

Are  your  wife  and  children  destitute  of  bed  to  lie  on 
or  bread  to  live  on? 

Have  you  lost  a  parent  or  child  by  suicide,  from  want 
or  despair? 

Have  disease  and  death  entered  your  un thatched  roof, 
and  carried  off  your  idols,  and  you  the  wretched,  ruined 
survivors? 

Are  you  out  of  employment,  tramping  up  and  down 
the  earth  for  sustenance,  or  eking  out  a  prison  life,  in 
preference  to  starvation? 

Are  you  one  of  the  millions  who  have  been  bank- 
rupted, robbed  and  ruined  for  life,  with  hopes  blasted, 
prospects  blighted,  a  living  wreck,  that  the  usurer  might 
lay  in  his  harvest  of  gold,  dress  in  fine  linen,  and  fare 
sumptuously  every  day?  If  you  have  suffered  none  of 
these  things,  you  are  not  a  judge  of  those  who  have. 
But  if  you  have,  knowing  them  to  be  the  fruits  of  specie 
basis  and  usury,  and  still  shake  hands  with  those  who 
advocate  the  murderous  system,  then  you  are  unworthy 
the  name  of  freemen,  and  whatever  may  be  your  rank  or 
title  in  life,  you  have  "the  heart  of  a  coward,  and  the 
spirit  of  a  sycophant." 


40  LABOR    AND    FINANCE   REVOLUTION. 

"With  the  exception  of  the  incidents  and  results  of  the 
revolution  of  '76,  national  affairs  and  national  politics 
never  presented  questions  of  such  momentous  importance 
to  the  American  people  as  stand  to-day  foremost  on  the 
calendar  of  public  discussion.  Circumstances  seem  to 
be  culminating  to  precipitate  a  struggle  which  may,  and 
probably  will,  result  in  another  revolution  of  greater 
importance  to  the  world  than  any  which  has  preceded 
it.  The  revolution  of  a  century  ago  was  the  triumph  of 
democracy  over  monarchy,  the  ballot  over  the  scepter. 
The  struggle  now  pending,  is  between  the  same  spirit 
that  won  the  victories  of  the  revolution,  and  demon- 
strated the  possibility  of  political  liberty,  and  that  power 
behind  the  throne,  stronger  and  more  despotic  than  he 
who  sat  upon  it.  As  vigilance  is  the  price  of  liberty, 
every  patriot  is  called  upon  to  contribute  his  share. 


CHAPTER  II. 

OUR  RESOURCES. 

Probably  no  territory  on  earth  of  the  same  area  is 
more  richly  endowed  with  natural  resources  and  the  ele- 
ments of  wealth  and  prosperity,  than  that  embraced 
within  the  United  States.  It  possesses  every  variety  of 
climate,  soil  and  production,  with  unmeasured  and  un- 
imagined  mineral  deposits  of  every  conceivable  variety 
magnificent  forests  of  timber,  with  ocean-bound  coasts 
on  the  east  and  west,  on  the  north,  a  chain  of  inland 
seas,  and  the  land-locked  gulf  on  the  south,  while  a  net 
work  of  the  grandest  rivers  in  the  world  afford  natural 
highways,  and  cheap  and  .easy  transportation  and  dis- 
tribution of  the  products  of  labor,  and  the  bountiful 
supplies  of  nature's  store  houses.  AV hence  came  these 
generous  supplies,  and  for  whom  were  tliey  designed? 
After  God  had  created  the  earth  and  the  fullness  thereof. 
He  created  man,  the  crown  and  coronation  of  His  work, 
and  gav^e  the  earth  into  his  possession,  with  instructions 
to  multiply  and  replenish.  He  said  to  man,  "  Behold,  I 
have  given  to  you  every  herb  bearing  seed,  to  you  it  sliall 
be  for  meat.  Have  dominion  over  the  fish  of  the  sea, 
and  over  the  fowls  of  the  air,  and  over  the  cattle,  and 
over  all  the  earthy  and  over  every  creeping  thing  that 
creepeth  upon  the  earth." 

All  of  these  are  the  free  o-ifts  of  God  to  man.  Each 
man  inherits,  in  common  with  the  universal  brother- 
hood of  man,  these  blessings.     "We  are  all  heirs  uf  God, 

41 


42  LABOR    AND    FINANCE    REVOLUTION. 

and  joint  and  equal  heirs  of  these,  Plis  gifts.  There  is 
enough  for  all  the  needs  and  luxuries  of  the  human  race, 
and  an  abundance  to  spare  for  the  beasts  of  the  Held,  the 
fish  of  the  sea,  and  the  fowls  of  the  air. 

Every  soul  is  born  into  the  world  naked  and  helpless, 
but  anticipating  its  advent  and  wants,  a  benevolent 
Creator  has  from  the  morning  of  creation  supplied  an 
abundance  to  satisfy  all  the  needs  and  luxuries  of  His 
creatures,  and  if  any  child  of  God  is  not  in  the  full  en- 
joyment of  all  that  is  necessary  for  his  bodily  wants  and 
soul's  development,  it  is  because  he  has  been  deprived 
of  his  just  inheritance  by  the  hand  of  legalized  robbery. 

In  the  United  States  there  is  yet  sufficient  unclaimed 
and  unoccupied  soil  to  give  every  man  a  farm.  Sufficient 
unowned  and  unpossessed  timber,  stone,  brick,  paint, 
nail,  and  glass  material  to  construct  for  every  family  a 
palace.  Ample  unclaimed  and  unappropriated  facilities 
for  raising  cotton,  woolen,  silk,  and  fur  fabrics  to  con- 
struct royal  robes  for  every  man,  woman  and  child  in 
America,  Abundance  of  material  going  to  waste  to 
fashion  into  form  elegant  furniture,  carpets,  bedding, 
and  ornamentation  for  every  palace  and  home  in  the 
land.  There  are  millions  of  acres  of  uncultivated  soil 
pregnant  and  groaning  with  the  elements  of  food  for 
every  hungry  family. 

There  is  no  lack  of  skill  and  labor  to  raise,  fashion, 
and  produce  from  natural  resources  an  abundance  to 
supply  every  want  and  gratify  every  desire,  taste,  hope, 
and  holy  aspiration  of  man.  Nature's  storehouse  is 
full  of  unclaimed  raw  material,  requiring  only  the 
magic  touch  of  labor  to  bring  forth  that  which  will  sat- 
isfy every  want  of  man. 

Millions  of  laborers  stand  idle  in  the  market  places, 
offering  their  services  and  begging  to  be  employed. 


OUR   KESOURCES.  45 

Millions  of  women  and  children  go  linngry  and  half 
clad  tlirongh  the  streets  begging  for  bread  and  clothing. 

Famine  stalks  abroad  at  noon-day,  while  the  vanlts  of 
nature  are  bursting  with  the  fullness  of  food. 

Able  bodied  and  skillful  laborers  are  tramping  the 
streets  for  a  beggar's  subsistence,  and  moulding  them- 
selves into  felons  that  they  may  be  adapted  to  the  con- 
ditions which  surround  them. 

"What  is  the  matter? 

No  lack  of  resources.  No  lack  of  skill  to  fashion ,  or 
labor  to  produce.  No  lack  of  transportation  to  distrib- 
ute and  exchange  the  fruits  of  earth  and  the  products  of 
skill.  But  one  thing  for  which  the  earth  cries  aloud, 
and  for  want  of  which  humanity  is  rapidly  going  down- 
grade to  perdition.  '-  Without  money,  civilization  could 
never  have  had  a  beginning.  With  an  insufticient  quan- 
tity of  it,  it  will  languish,  and  finally  die." 

With  an  abundant  supply,  our  country  can  be  made  a 
paradise,and  our  generation  inaugurate  the  millennium. 
It  is  not  gold  and  silver  we  want,  but  the  money  tliat 
carried  the  nation  through  the  war,  fought  our  battles 
in  the  clouds,  spanned  the  continent  and  bound  the  two 
oceans  tocjether  with  iron  bands. 

It  will  give  us  cdlleges  in  place  of  prisons,  schools  in 
place  of  courts,  increase  in  place  of  ruinous  taxation, 
teachers  in  place  of  sheriffs  and  policemen,  refinement 
in  place  of  demoralization,  skilled  artisans  in  place  of 
tramps,  wealth  in  place  of  poverty,  justice  in  place  of 
robbery,  and  peace  on  earth  and  good  will  toward  one 
another  in  place  of  crime  and  violence. 

Unlike  other  nations  of  earth,  the  people  of  America 
have  the  means  in  their  own  hands,  and  the  power  in  their 
own  sovereignty,  to  bring  about  these  glorious  results. 


CHAPTER  III, 
CAUSE   OF  THE   "  DAKK  AGES." 

FACTS  GLEANED  FROM  THE  REPORT    OF  THE  MONETARY  COM- 
MISSION. 

"At  the  Christian  era,  the  metallic  money  of  the 
Roman  empire  amounted  to  one  thousand^  eight  Min- 
dred  million  dollars.  By  the  end  of  the  fifteenth  cen- 
tury, it  had  shrunk  to  less  than  two  hundred  million 
dollars. 

"  During  this  period,  the  most  extraordinary  and 
baleful  change  took  place  in  the  condition  of  the  world. 
Commerce,  art,  wealth  and  freedom  disappeared.  The 
people  were  reduced  by  poverty  and  misery  to  the  most 
degraded  condition  of  serfdom  and  slavery. 

''  Whether  the  cause  or  not,  this  period  was  coinci- 
dent with  the  shrinkage  in  the  volume  of  money  which 
had  no  historic  parallel. 

"  The  crumbling  of  institutions  kept  even  step  with 
the  shrinkage  in  the  stock  of  money  and  ihe  falling  of 
prices. 

"  It  is  a  suggestive  coincidence,  that  the  first  glimmer 
of  light  only  came  with  the  invention  of  bills  of  ex- 
change, and  paper  substitutes,  through  which  the  scanty 
stock  of  precious  metals  was  increased  in  efiiciency. 

"  It  needed  the  heroic  treatment  of  rising  2>^'ices  to 
enable  society  to  re-unite  its  shattered  links,  to  shake 
ofi"  the  shackles  of  feudalism,  to  re-light  and  uplift  the 
almost  extinguished  torch  of  civilization. 

44 


CAUSE    OF   THE   DARK   AGES.  45 

"That  the  disasters  of  the  Dark  Ages  were  caused 
by  decreasing  money  and  falling  prices,  and  that  the  re- 
covery therefrom  and  the  comparative  prosperity  which 
followed  the  discovery  of  America,  were  due  to  an 
increasing  supply  of  the  precious  metals  and  rising 
prices,  will  not  seem  surprising  or  unreasonable  when 
the  noble  functions  of  money  are  considered. 

"  Money  is  the  great  instrument  of  association,  the 
very  fibre  of  social  organism,  the  vitalizing  force  of 
industry,  the  protoplasm  of  civilization,  and  as  essential 
to  its  existence  as  oxygen  is  to  animal  life. 

"  Without  money  civilization  could  not  have  had  a 
beginning,  with  a  diminishing  sii'pplyit  must  languish^ 
and,  unless  reWexed,  finally  j^e^ish. 

"Symptoms  of  disaster,  similar  to  thoso  which  befell 
society  during  the  dark  ages,  were  observable  on  every 
hand  during  the  first  half  of  this  century. 

"  In  1809  the  revolutionary  war  between  Spain  and  her 
American  colonies  broke  out.  These  troubles  resulted 
in  a  great  diminution  of  the  production  of  the  precious 
metals,  which  was  quickly  indicated  by  a  fall  in  general 
prices. 

"  The  purchasing  power  of  the  precious  metals  in- 
creased between  1809  and  1848  fully  145  per  cent.,  or,  in 
other  words,  the  general  range  of  prices  was  60  per  cent, 
lower  in  1848  than  it  was  in  1809. 

"  During  this  time  the  volume  of  money  did  not 
materially  decrease,  but  the  supply  was  not  sufficient  to 
keep  the  stock  up  to  the  proper  correspondence  with 
the  increasing  demand  of  advancing  civilization. 

"The  world  has  rarely  passed  through  a  more  gloomy 
period  than  this  one.  Again  do  we  find  falling  prices, 
and  misery  and  destitution  inseparable  companions. 


46  LABOR    AND    FINANCE    REVOLUTION. 

"  The  poverty  and  distress  of  the  industrial  masses 
were  intense  and  universaL  In  England  the  sufferings 
of  the  people  found  expression  in  demands  upon  Parlia- 
ment, for  relief,  in  bread  riots.  The  military  arm  had 
to  be  strengthened  to  prevent  the  all-pervading  discon- 
tent from  ripening  into  open  revolt.  (3n  the  Continent 
the  lires  of  revolution  smoldered  everywhere  and  blazed 
out  at  many  points,  threatening  the  overthrow  of  States 
and  the  subversion  of  social  institutions. 

"  Wherever  and  whenever  the  mutterings  of  discon- 
tent were  hushed  bv  the  fear  of  increased  standing 
armies,  the  foundation  of  society  were  honeycombed 
by  powerful  secret  political  organizations. 

"  The  cause  at  work  to  produce  this  state  of  things 
was  so  subtle,  and  its  advances  so  silent,  that  the  masses 
were  entirely  ignorant  of  its  nature.  They  had  come 
to  regard  money  as  an  institution  fixed  and  immovable 
in  value,  and  when  prices  of  property  and  wages  of 
labor  fell,  they  charged  the  fault  not  to  the  money,  but 
to  property  and  the  employer. 

"  They  were  taught  that  the  mischief  was  the  result  of 
over-production.  Never  having  observed  that  over-pro- 
duction was  complained  of  only  when  the  money  stock 
was  decreasing,  their  prejudices  were  aroused  against 
labor-saving  machinery. 

"  They  were  angered  at  capital  because  it  either  de- 
clined altogether  to  embark  in  industrial  enterprises,  or 
would  only  embark  in  them  upon  the  condition  of  em- 
ploying labor  at  the  most  scanty  remuneration. 

"  They  forgot  that  falling  prices  compelled  capital  to 
avoid  such  enterprises  on  any  other  conditions,  and,  for 
the  most  part,  to  avoid  them  entirely.  They  did  not 
comprehend  that  money  in  shrinking  volume  was  the 


CAUSE  OF  THE  DAKK  AGES.  47 

prolific  parent  of  enforced  idleness  and  poverty,  and 
that  falling  prices  divorced  money,  capital,  and  labor; 
but  tliey  none  the  less  felt  the  paralyzing  pressure  of 
the  shrinking  metallic  shroud  that  was  closing  around 
industry." 

William  Jacob,  F,  R.  S.,  gives  the  following  table, 
showing  the  progress  of  contraction  to  the  year  806, 
when  the  lamp  of  civilization  went  out,  and  the  night 
of  the  dark  ages  prevented  him  from  continuing  the 
report: 

A.  D.    14 $1,790,000,000 

A.  D.  230 909,000,000 

A.  D.  410 537,000,000 

A.  D.  663 256,000,000 

A.  D.  806 168,000,000 

The  first  glimmer  of  light  from  the  midnight  of  the 
gold  and  silver  era,  came  on  the  wings  of  paper  substi- 
tutes, the  invention  of  bills  of  exchange. 

EFFECTS   OF    CURKENCY    CONTRACTION. 

The  effects  of  a  decreasing  volume  of  currencj'  upon 
the  business,  prosperity,  and  people  of  a  country  are 
well  stated  in  the  following  extracts:* 

"While  the  volume  of  money  is  decreasing,  even 
though  very  slowly,  the  value  of  each  unit  of  money  is 
increasing  in  a  corresponding  ratio,  and  property  and 
wages  are  decreasing. 

"Those  who  have  contracted  to  pay  money,  find  that  it 
is  constantly  becoming  more  difiicult  to  meet  their  en- 
gagements. The  margin  of  securities  melt  rapidly,  and 
their  confiscation  by  the  creditor  becomes  only  a  question 
of  time. 

"All  productive  enterprises  are  discouraged  and  stag- 
nate, because  the  cost  of  producing  commodities  to-day 
will  not  be  covered  by  the  price  obtainable  for  them  to- 

*Coiigressioual  Monetary  Commission. 


48  LABOR   AND    FINANCE    KEVOLUTION. 

morrow.  Exchanges  become  sluggish,  because  those 
who  have  money  will  not  part  with  it  for  either  property 
or  service,  for  the  obvious  reason  that  money  alone  is 
increasing  in  value^  while  everything  else  is  decreasing 
in  price. 

"This  results  in  the  withdrawal  of  money  from  the 
channels  of  circulation,  and  its  deposit  in  great  hordes 
where  it  can  exert  no  influence  on  prices. 

^'Money  in  shrinking  volume  becomes  the  j9«ramc>w«^ 
object  of  commerce^  instead  of  the  beneficent  instrument. 
Instead  of  mobilizing  industry,  it  poisons  and  dries  up 
its  life  currents. 

"It  is  the  fruitful  source  of  political  and  social  dis- 
turbance. 

"It  foments  strife  between  labor  and  other  forms  of 
capital,  while  itself,  hidden  away,  gorges  on  both. 

"It  rewards  close-fisted  lenders,  and  filches  from,  and 
bankrupts,  enterprising  producers." 

The  Americaii  Review  (1876)  says: 

"  Diminishing  money  and  falling  prices  are  not 
only  oppressive  upon  debtors,  but  they  cause  stagna- 
tion in  business,  reduce  production,  and  enforce  idle- 
ness. Falling  markets  annihilate  profits,  and  as  it  is 
only  the  expectation  of  gain  that  stimulates  capital  to 
invest  in  operations,  inadequate  employment  is  found 
for  labor,  and  those  who  are  employed  can  only  be  so  on 
diminished  wages." 

Leon  Fanchet  (1843)  says: 

"  If  all  the  nations  of  Europe  adopt  the  system  of 
Great  Britain,  the  price  of  gold  would  be  raised  beyond 
measure,  and  we  should  see  produced  a  result  lamentable 
enough." 

David  Hume,  in  Essays  on  Money,  says: 


CAUSE  OF  THE  DARK  AGES. 


49 


"•We  find  that  in  every  kingdom  into  which  money 
begins  to  flow  in  greater  abundance  than  formerly,  every- 
thing takes  a  new  face;  labor  and  industry  gain  life,  the 
merchants  become  more  enterprising,  the  manufacturers 
more  diligent  and  skillful,  and  the  farmer  follows  his 
plow  with  greater  attention  and  alacrity.  The  good  pol- 
icy of  the  government  consists  of  keeping  it,  if  possible, 
still  increasing^  as  long  as  there  is  an  undeveloped  re- 
source or  room  for  a  new  emigrant,  because  by  that 
means  there  is  kept  alive  a  spirit  of  industry  in  the  na- 
tion, which  increases  the  stock  oflahor,  in  which  consists 
all  real  power  and  riches. 

"A  nation  whose  money  decreases,  is  actually  weaker 
and  more  miserable  than  other  nations,  which  possess 
less  money,  but  are  on  the  increasing  hand." 

"Wm.  H.  Crawford,  Secretary  of  the  Treasury,  in  his 
report,  Feb.,  1820,  says: 

"All  intelligent  writers  on  currency  agree  that  when 
it  is  decreasing  in  amount,  poverty  and  misery  must 
prevail." 

The  following  table,  compiled  from  official  sources, 
shows  the  amount  of  our  circulation,  per  capita,  and  its 
contraction  from  1865  to  1877: 


YEAR. 

CURRENCY. 

POP. 

PER  CAP. 

1865                    

$1,651,282,373 
1,803,702,726 
1,330,414,677 
817,199,773 
750,025,989 
740,039,179 
734,244,774 
736,349,912 
738,291,749 
779,031,589 
778,176,250 
735,358,832 
696,443,394 

34,819,531 
35,537,148 
36,269,502 
37,016,949 
37,779,800 
38,558,371 
39,750,073 
40,978,607 
42,245,110 
43,550,756 
44,896,705 
46,284,344 
47,714,829 

$47.42 

1866        

60.76 

1867        

36.68 

1868 

1869     

22.08 
19.85 

1870                

19.19 

1871        

18.47 

1872               -       

17.97 

1873 

17.48 

1874 

17.84 

1875 

17.33 

1876 

1877 

15.89 
14.60 

4 

50  LABOR   AND   FINANCE    REVOLUTION. 

The  component  elements  of  the  above  volume  of  paper 
money  in  each  year  comprise  the  following  items,  ac- 
cordino;  as  these  were  in  existence  at  the  time:  Demand, 
and  one  and  two  year  treasury  notes,  (acts  of  Dec.  37, 
1857:  Dec.  17,  1860,  and  March  2,  1861);  temporary 
ten  day  loans  and  one  year  certificates  of  indebtedness; 
treasury  notes  payable  in  two  years  and  sixty  days;  seven- 
thirty  three  year  notes;  compound  interest  notes;  three 
per  cent,  certificates:  non-interest  bearing  demand  and 
legal  tender  notes  (acts  of  July  17,  1861;  Feb.  25, 
1862;  July  11,  1872,  and  March  3,  1961);  fractional 
currency;  State  bank  notes;  and  national  bank  notes. 

That  business  failures  have  resulted  from,  and  kept 
even  pace  with,  the  contraction  of  the  currency,  there  is 
no  doubt,  as  the  following  table,  prepared  by  Dunn,, 
Barlow  &  Co-.,  will  show: 

Hugh  McCuUoch  was  aware  of  the  depressing  and 

pan  icy  influences  of  contraction  when  he  said,  in  1866: 

"  The  process  of  contracting  the  circulation  of  the  government 
notes  should  go  on  just  as  rajiidly  as  possible  without  producikg  a 

FINANCIAL  CRASH." 

McCuUoch  was  wise  enough  to  anticipate  the  results 
of  contraction. 

Hon.  A.  G.  Spaulding,  an  eminent  banker  and  mem- 
ber of  congress  from  New  York,  wrote  McCuUoch,  in 
1866,  then  secretary,  to  "•  contract  slowly^  so  as  to  main- 
tain A  TOLERABLE  EASY  MONEY  MARKET  FOR  AT  LEAST  A 
YEAR  TO  COME." 

Sherman  himself,  then  honest,  stated  in  the  senate 
that  such  contraction  of  the  currency  as  was  anticipated 
in  the  bill,  ''  would  jyroduce  the  most  disastrous  finan- 
cial results  that  ever  hefell  the  nation.''^ 

Figures  won't  lie. 


CAUSE  OF  THE  DARK  AGES. 


51 


We  all  know  that  the  panic  and  crash  of  1857,  dur- 
ing which  year  over  4,000  business  failures  took  ])lace, 
involving  a  loss  of  over  $200,000,000  by  bankruptcies, 
was  wholly  produced  by  the  loss  and  contraction  of  the 
bank  currency  of  the  country,  resulting  from  the  expor- 
tation of  coin  from  the  United  States  to  meet  an  extra- 
ordinary European  demand. 

The  panic  and  crash  of  1860,  during  which  year  over 
6,000  business  failures  took  place,  was  caused  b}'  the  loss 
and  contraction  of  nearlj^  all  our  western  currency  by 
failure  of  banks  based  upon  southern  state  stocks. 
After  the  greenback  era  of  1862,  the  number  of  failures 
diminished  with  the  increasing  of  the  currenc}',  and 
when  contraction  commenced,  in  1866,  the  failures  com- 
menced to  increase  and  kept  even  pace  with  such  con- 
traction. Here  are  the  figures,  which  arfe  worth  more 
than  all  the  sophisms  of  demagogues. 

Year.  Number.  Amount. 

1857 4,932  $291,750,000 

1858. 4225  95,749,000 

1859 3,913  64,394,000 

1860 3.673  79,807,000 

1861  6,993  207,210,000 

1862. 1,652  23,049,300 

1883 485  6,864,700 

1864     520  8,579,000 

1865 530  17,625,000 

1866 632  47,333,000 

1867 2,386  86,218,000 

1868 6,608  ■  63,774,000 

1869 2,799  75,054,000 

1870  3,551  88,242,000 

1871 2,915  85,252,000 

1872 4,069  121,056,000 

1873 5,183  228,499,000 

1874 5,830  155,239000 

1875 7,740  201,060,353 

1876 9,092  191,117,786 

1877 8,872  190,660,936 

1878  10,478  234,383,132 

1879  (six  months) 4,058  65,779,398 


52  LABOR   AND    FINANCE    REVOLUTION. 

If  the  nmnber  of  failures  for  the  first  six  months  of 
the  year  1879  were  less  than  the  number  for  the  corre- 
sponding time  the  previous  year,  it  is  no  evidence  that  the 
cause  was  being  removed,  but  like  the  apparent  improved 
condition  of  a  scourge-cursed  Memphis,  there  were  fewer 
cases  because  there  were  fewer  victims  to  destroy. 

Secretary  Sherman  denies  that  resumption  had  any 
hand  in  the  catastrophe,  because  the  collapse  occurred 
fourteen  months  before  the  act  was  passed.  He  failed 
to  state  that  the  object  of  contraction  was  to  appreciate 
the  remaining  greenbacks  to  an  equivalency  with  gold, 
and  the  act  simply  specified  the  day  when  the  money 
sharks  anticipated  that  they  would,  through  contraction, 
reach  that  point.  But  notwithstanding  the  great  appre- 
ciation of  gold  itself,  it  being  some  3i  per  cent,  from 
1873  to  1879,  contractions  had  been  so  rapid  and  disas- 
trous to  general  values  that  the  remaining  greenbacks 
caught  up  with  gold  before  the  day  appointed.  It  is 
true  the  congressional  act  providing  for  resumption  on 
January  1,  1879,  did  not  produce  the  panic,  but  prepar- 
ing our  national  finances  to  enable  congress  to  safely 
predict,  and  set  a  day  when  such  a  result  could  be  legal- 
ized, did  the  work. 

As  the  true  causes  Secretary  Sherman  ascribes  "  the 
waste  of  war^''  ^^  over -'production^''  "  wild  speculation^'* 
'"'^'mjiated  prices^''  etc.  How  an  over-production  of  pro- 
ducts could  possibly  co-exist  with  the  wastes  of  war,  and 
how  the  two  could  combine  to  result  in  a  panic  and 
widespread  bankruptcy  nine  years  after  the  war  termi- 
nated^ the  learned  demagogue  left  the  public  to  cypher 
out. 

"Inflated  prices"  and  "over  production"  are  equally 
inconsistent  coincidents.     Inflated  prices  generally  have 


CAUSE  OF  THE  DARK  AGES.  53 

the  effect  to  deplete  stocks.     It  is  generally   the   low 
priced  stocks  that  move  slow  and  accumulate. 

The  chief  cause  ascribed  by  Mr.  Sherman  was  our 
^^irredeemahle  paper  currency  that  varied  in  value  from 
day  to  dayP  Let  an  insulted  public  pause  one  moment, 
and  consider  if  there  ever  was  a  day,  while  gold  was 
bobbing  between  100  and  285,  but  every  dollar  of  this 
irredeemable  paper  money  would  pay  a  dollar  of  debts. 
The  $2,000,000,000  of  losses  were  not  the  result  of 
irredeemable  paper  money,  for  with  that  money — as  bad 
as  it  was,  every  debt  could  have  been  paid.  It  was  for 
the  want  of  it  that  disaster  came.  AVhen  the  currency 
was  poorest,  relatively  to  gold,  our  prosperity  was 
greatest,  and  our  financial  disasters  fewest,  nor  was 
there  a  symptom  or  an  indication  of  financial  prostration 
until  contraction  had  forced  an  undue  inflation  of 
credits. 


CHAPTER  IV. 

THE  NATURE  AND  FUNCTIONS  OF  MONEY, 

•'  Money  is  the  national  medium  of  exchange  for  prop- 
erty and  products.  It  must  be  instituted,  and  its  value 
must  be  fixed  by  the  laws  of  the  nation,  in  order  to  make 
it  a  public  tender  in  payment  of  debts.  No  debt  can 
be  paid  with  property  or  with  individual  notes,  except 
by  consent  of  the  creditor;  but  when  money  is  tendered, 
all  creditors  are  compelled  to  receive  it  in  full  satisfac- 
tion of  debts.  The  aim  of  legislation  in  reo^ulatino;  the 
value  of  money  is  to  insure  to  all  individuals,  in  making- 
exchanges  of  their  property  for  money,  the  full  value  of 
their  products  or  property.  Debts  are  postponements 
of  the  time  of  payment  for  tlie  property  or  products  re- 
ceived; and  loans  of  money,  and  all  rents  of  property, 
are  mere  rents  of  the  use  of  certain  amounts  of  legal  or 
actual  value,  which  use  is  to  be  paid  for  at  the  expira- 
tion of  a  specified  period.  Money  is  the  legal  tender,, 
and  must  be  offered  and  received  in  payment  for  all 
these  debts, 

"  Certain  properties  are  by  law  given  to  some  substance, 
which  bears  the  name  and  performs  the  functions  of 
money.  The  term  money ^  then,  signifies  a  legal,  public 
medium  of  exchange,  which  possesses  all  the  qualifica- 
tions necessary  to  effect  a  just  exchange  of  property. 
In  the  discussion  of  the  nature  of  money,  it  will  appear 
that  its  properties  are,  in  trutli,  the  creation  of  law,  and 
entirely  different  from  the  properties  of  the  things  which 
it  exchanges. 

•  54 


THE    NATURE    AND    FUNCTIONS    OF    MONEY.  00 

"  Money  has  four  properties  or  powers,  \\z.: 2^oioer  to 
represent  value,  power  to  measure  value ^  power  to  accu- 
mulate value  hy  interest,  and  power  to  exchange  value. 
These  properties  are  co-essential  to  a  medium  of  ex- 
change: it  is  impossible  that  any  one  of  them  should  ex- 
ist in  such  a  medium  independently  of  the  others.  The 
material  of  money  is  a  legalized  agents  employed  to  ex- 
press these  powers,  and  I'ender  them  available  in  trade. 
The  powers  of  money,  which  alone  render  it  useful,  are 
created  by  legislation,  therefore  money  can  possess  none 
but  legal  value.  All  legal  value  depends  upon  the  actual 
value  that  it  represents. 

"Some  writers,  instead  of  considerini;  money  as  a  me- 
dium  of  exchange,  call  it  capital  seeking  investment. 
If  money  be  capital,  it  is  already  invested;  because  the 
capital  would  consist  in  the  inherent  value  of  the  mate- 
rial of  the  money,  and  not  in  the  thing  the  money  seeks 
to  obtain.  But,  when  money  has  found  one  investment, 
it  is  as  much  a  seeker  for  a  second  and  a  third  invest- 
ment, as  if  it  had  not  been  invested  at  all.  It  is  always 
seeking  investment,  without  being  invested.  It  is  no 
more  real  capital  than  a  very  poor  horse,  of  which  the 
appearance  is  such  that  he  will  do  very  well  to  exchange 
off.  But  if  he  should  finally  fall  into  the  hands  of 
a  person  who  had  not  the  good  fortune  to  exchange 
him  again  for  something  else,  the  owner  would  have  to 
depend  upon  his  few  useful  qualities.  And  if  a  currency 
were  formed  in  the  various  nations  independently  of 
gold  and  silver,  and  coins  should  cease  to  be  a  tender  in 
payment  of  debts,  the  value  of  coins  would  depend  upon 
their  inherent  qualities,  as  metals,  as  much  as  the  value 
of  the  horse  when  he  could  be  no  longer  exchanged  for 
more  than  his  actual  worth,  would  depend  upon  the  lit- 


56  LABOR   AND    FINANCE    REVOLUTION. 

tie  labor  that  lie  could  perform,  or  upon  liis  hide  and 
bones.  The  price  of  the  gold  and  of  the  horse  would 
then  depend  upon  their  actual,  usefulness,  and  not  upon 
any  capabilities  for  exchange. 

"  Money  is,  then,  a  combination  of  legal  powers,  ex- 
pressed upon  metal,  paper,  or  some  other  substance;  its 
value  is  the  standard,  or  determiner  of  the  value  of  all 
other  things,  and  it  serves  as  a  public  medium  of  ex- 
change for  land,  labor,  and  all  commodities." — Kellog. 

Scattered  throughout  the  length  and  breadth  of  the 
land,  are  the  millions  of  workers,  engaged  in  producing 
those  commodities  demanded  for  the  needs  and  luxuries 
of  man.  These  productions  alone  constitute  wealth. 
Commerce  consists  in  the  modes  and  methods  of  dis- 
tributing tlie  various  products  of  skill,  so  that  each  pro- 
ducer may  enjoy  the  benefit  of  the  product  of  every 
other  man. 

To  accomplish  this,  with  the  least  possible  expense  to 
both  producer  and  consumer,  is  the  mission  of  true  po- 
litical economy.  An  universally  accepted  and  recog- 
nized medium  of  exchange  is  as  essential  as  safe  and 
cheap  transportation. 

One  exchanges  ownership,  the  other  location. 

Hence,  cheap  and  abundant  money  is  as  essential  to 
the  prosperity  of  both  producer  and  consumer,  as  abund- 
ant and  cheap  transportation. 

If  the  medium  of  transportation  is  limited,  or  inade- 
quate to  effect  the  necessary  change  of  location,  con- 
sumption must  be  limited,  and  people  in  every  part  of 
the  country  must  go  destitute,  and  perhaps  suffer  for  the 
want  of  many  things  which  are  produced  in  abundance 
but  cannot  be  distributed.  With  such  limited  trans- 
portation, those  who  monopolize  it  can  command  any 


THE  NATURE  ANP  FUNCTIONS  OF  MONEY.      57 

portion  of  the  surplus  of  a  country's  production  they 
choose,  for  transporting  the  balance.  The  result  would 
be,  low  prices  and  an  overstock  at  every  point  of  pro- 
duction, and  destitution  and  high  prices,  at  every  point 
of  consumption.  The  same  principle  will  hold  good  in 
regard  to  the  medium  of  exchange.  As  it  takes  a  cer- 
tain  number  of  cars  to  move  the  surplus  products  of 
the  country  from  the  places  of  production  to  the  places 
of  consumption,  so  it  takes  a  certain  number  of  dollars 
to  eifect  the  exchanges  of  ownership.  If  cars  are  too 
scarce,  products  accumulate,  prices  fall,  and  labor  is 
thrown  out  of  employment.  If  dollars  are  too  few, 
exchanges  cannot  be  made,  products  accumulate  on  the 
hands  of  producers,  prices  decline,  and  labor  is  thrown 
out  of  employment. 

If  railroads  ramify  all  parts  of  the  country,  and  roll- 
ing stock  is  abundant,  the  location  of  commodities  can 
be  changed  at  cost,  and  a  fair  recompense  for  use  of  the 
means  invested.  So  if  dollars  are  abundant,  and  not 
controlled  by  monopoly,  exchanges  of  ownership  may 
be  so  readily  and  cheaply  effected  as  to  provide  every 
laborer  and  producer  with  a  ready  market,  full  employ- 
ment, ample  reward,  and  an  abundance  to  supply  all 
necessary  wants  and  to  gratify  all  proper  desires.  As 
an  abundance  of  railroads  lessens  the  profits  of  the  rail- 
road kings,  and  prevents  them  from  fleecing  the  public, 
so  an  abundance  of  money  lessens  the  banker's  profits, 
and  prevents  him  from  robbing  the  producers  of  wealth. 
An  expansion  of  either  would  bless  the  masses;  a  con- 
traction of  either  would  enrich  their  owners.  As  well 
style  a  single  railroad  track  across  the  continent,  and 
the  exorbitant  profits  it  could  make  on  the  amount  in- 
vested, ''honest  transportation,"  and  call  such  limited 


58  LABOR   AND    FINANCE   REVOLUTION. 

facilities,  a  "  sound  policy,"  as  limit  money  to  a  safe 
gold  basis  and  depress  prices  to  the  gold  standard,  and 
call  it  "  honest  money,"  and  a  "  sound  policy." 

Nothing  is  honest  that  robs,  and  no  policy  is  sound 
that  deprives  society  of  its  natural  wants,  and  tends  to 
demoralize,  rather  than  to  elevate  the  human  race.  Be- 
fore the  wealth  producers  and  toilers  of  this  country  can 
be  free,  and  enjoy  the  fruits  of  their  own  labor,  both 
money  and  transportation  must  be  wrested  from  the 
hands  of  monopoly,  and,  controlled  by  wise  legislation, 
made  the  servants  and  not  the  masters  of  labor. 

MATERIAL    OF    MONEY, 

Mr.  Madden,  author  of  coins  of  the  Jews,  states  that 
in  the  West  Indies  and  South  America,  pins,  a  slice  of 
bread,  a  pinch  of  snuff,  a  dram  of  whisky,  soap,  choco- 
late and  eggs  were  current  money. 

The  aboriginal  inhabitants  of  America  used  wampum, 
and  cocoanuts.  As  late  as  1635,  wampum  was  made  a 
leeral  tender  in  Massachusetts  among  the  colonists. 

Silver  being  demonetized  in  Great  Britain,  Thomas 
Baring  says  that  in  1847  it  was  impossible  to  raise  any 
money  whatever  on  £60,000  of  silver. 

During  a  similar  crisis  in  Calcutta  in  1864,  it  was 
equally  impossible  to  raise  a  single  rupee  on  £20,000  of 
£rold,  that  metal  beino;  demonetized  in  India. 

In  Britain  at  an  early  time  a  double  standard  was 
used,  called  "living  money"  and  "dead  money,"  or  slaves 
and  cattle,  and  land  and  metal. 

In  the  twelfth  centurv,  2:old  and  silver  coins  were  re- 
deeraable  in  leather  legal  tenders  in  Sicily,  under  Wil- 
liam I. 


the"  nature  and  functions  of  money.  59 

In  the  fourteenth  centnry,  the  Chinese  used  a  money 
coined  from  the  inner  bark  of  the  mulberry  tree. 

The  inhabitants  of  the  coast  of  Africa  use  an  ''ideal" 
money — a  sign  of  value,  without  money. 

In  the  South  Sea  Islands  beads  and  tools  of  iron  were 
long  used  as  money. 

Salt  is  the  current  money  of  Abyssinia,  codfish  of  Ice- 
land and  Newfoundland. 

At  an  early  day,  deer  and  coon  skins  were  legal  tender 
in  the  State  of  Illinois. 

In  1574,  large  amounts  of  pasteboard  money  were 
coined  in  Holland. 

Rome  used  both  wooden  and  leather  money  about  700 

B.  C. 

Tin  money  was  coined  by  Dionysius  I,  tyrant  of 
Syracuse. 

Platinum  was  coined  in  Russia  from  1S2S  to  18-15. 

The  Spaniards  used  leather  money  as  late  as  1574. 

Under  the  Caesars,  lands  were  made  money. 

The  Carthagenians  had  leather  money. 

France  used  leather  money  in  1360. 

Sir  John  Mandeville,  who  traveled  among  the  Asiatic 
nations  in  the  14th  century,  gives  an  account  of  an 
ancient  fiat  money  used  by  the  great  Chan  of  Persia  and 
Tartary,  which  is  given  by  Jevon,  in  his  "Money  and 
Mechanism  of  Exchange,"  as  follows: 

"This  Emperour  may  dispenden  als  moche  as  he  wile,  wilhouten 
estymacioun.  For  he  despeadelh  not,  he  maketh  no  money,  but  of 
Lether  emprented,  or  of  Papyre.  And  of  that  money,  is  some  of 
gretter  prys,  and  som  of  lasse  prys,  aftre  the  dy  vesiteer  of  his  Statutes. 
And  when  that  Money  hathe  ronne  so  longe  that  it  begynneth  to 
waste,  then  men  beren'it  to  the  Emperoure's  Tresorye;  and  than  thei 
taken  newe  money  lor  the  olde  And  that  money  gothe  thorghe  out 
all  the  Cnntree  and  thorshe  out  all  his  Provynces. 

"  For  there,  and  beyond  hem,  thei  mak  no  Money  nouther  of  Gold 
nor  Sylver." 


60  LABOK    AND    FINANCE    REVOLUTION. 

ANTIQUITY    OF    THE  GREENBACK  SYSTEM. 

The  hard  money  advocates  characterize  the  popular 
uprising  of  the  people  in  favor  of  a  representative  money 
as  a  "craze,"  a  "financial  epidemic,"  a  political  bubble, 
that  will  soon  burst,  and  leave  its  followers  stranded 
on  the  rocks  of  error  and  delusion. 

These  linancial  savans  would  do  well  to  bear  in  mind 
that  the  so-called  "fiat"  or  non-intrinsic  money  theory 
is  not  new.     It  is  as  old  as  civilization. 

It  liad  its  origin  when  men  were  honest,  and  only 
yielded  to  l)rute  force  in  the  hands  of  ambitious  tyrants, 
who  established  a  currency  of  intrinsic  value — the  easier 
to  enslave  and  rob  the  masses. 

Even  after  gold  and  silver  were  adopted,  it  was  discov- 
ered that  these  metals  did  not  increase  proportionately 
with  other  commodities;  and  the  wisdom  of  ancient 
legislators  perceived  that  production  must  be  arrested  if 
no  other  distributive  instrument  than  gold  and  silver 
were  employed. 

We  quote  from  Jonathan  Duncan:  "One  of  the  earliest 
plans  adopted  to  surmount  the  difficulty  was  the  creation 
of  a  National  Currency  in  each  independent  State,  for 
internal  trade;  and  its  distinctive  characteristic  was  the 
total   ahsence   of  intrinsic   value,  which    effectually 

PREVENTED  ITS  EXPORTATION. 

"This  invention  greatly  economized  the  use  of  the 
precious  metals,  allowing  them  to  be  wholly  employed 
in  discharging  the  halance  of  foreign  trade. 

"Thus  the  cities  of  Byzantium  and  Clazomense  pro- 
vided ii'on  money  for  their  own  citizens,  which  circulated 
at  home  for  the  value  impressed  on  it  by  public  au- 
thority." 


THE    NATURE   AND    FUNCTIONS   OF.  MONEY.  61 

The  monetary  laws  of  Lycurgus  were  founded  npon 
the  same  principle;  who  deprived  his  money  of  even  the 
intrinsic  value  of  iron,  by  lirst  destroying  its  malleabil- 
ity, so  it  could  not  be  converted  even  into  implements 
of  labor, 

Seneca  states  that  the  Spartans  used  leather  money, 
having  a  stamp  to  show  what  value  it  represented,  and 
by  whose  authority  it  was  issued. 

Plato  recommended  a  double  currency  in  every  nation: 
"  A  coin,"  he  said,  "  for  the  purposes  of  domestic  ex- 
change and  to  pay  wages  to  hired  servants  and  settlers, 
for  which  purpose  I  afhrm  it  must  have  value  among 
the  members  of  the  State,  hiit  no  value  to  the  rest  of  the 
worldP  For  visiting,  and  using  in  other  States,  Plato 
proposed  a  coin  of  intrinsic  value,  which  would  pass 
current  in  foreign  States. 

Xenophon  states  that  "  most  of  the  States  of  Greece 
have  money  which  is  not  current  except  in  their  own 
territory." 

Homer  and  Ilesiod  never  speak  of  gold  or  silver 
money. 

They  express  the  value  of  things  by  saying  they  are 
worth  so  many  oxen. 

They  estimated  the  riches  of  a  man  by  the  number 
of  his  flocks,  and  the  wealth  of  a  nation  by  the  abund- 
ance of  its  pastures. 

Homer  values  the  golden  armor  of  Glaucus  at  100 
oxen,  and  the  brazen  armor  of  Damocles  at  nine  oxen. 
Csesar  had  "  tribute  money,"  representing  a  tax  to  be 
paid,  which  was  issued  by  the  government,  based  upon 
taxes.  It  bought  property,  paid  for  labor,  discharged 
debts,  and  was  redeemed  in  taxes. 

It  bore  inscriptions  representing  real  money,  which 
was  cattle  and  property. 


62  LABOR    AND    FINANCE    REVOLUTION. 

Thus,  for  greater  cattle  tliej  were  stamped  with  the 
figure  of  a  horse  or  an  ox;  for  less,  with  that  of  a  hog; 
for  corn  fields,  with  an  ear  of  corn;  for  a  poll  tax,  with 
the  head  of  a  man. 

"  On  these  historical  facts,"  says  Duncan,  "  we  have 
evidence  that  all  things  of  value,  capable  of  being 
transferred  from  man  to  man,  were  accounted  real 
MONEY,  and  they  were  all  represented  by  symbols,  or 
tokens,  by  which  device  they  (the  things  of  value)  were 
rendered  movable  in  the  shape  of  currency  representa- 
tives." The  real  money — the  property  of  value,  was 
the  basis  and  security  on  which  the  tokens  were  issued, 
and  wlioever  held  a  token,  was  admonished  by  it  that  he 
was  a  creditor  to  its  amount  on  the  real  money  of  the 
country. 

Mone}',  in  the  strict  sense  of  the  term,  is  whatever  the 
communitv  consents  to  use  as  a  medium  of  exchancfe 
The  constitution  of  the  United  States  clothes  congress 
with  the  power  to  "coin  money  and  regulate  the  value 
thereof,"  but  is  silent  in  reference  to  the  material  upon 
which  the  money  function  shall  be  stamped.  Money, 
in  the  strict  sense  of  the  term,  does  not  possess  intrinsic 
value  more  than  a  court  judgment,  or  a  statute  of  law. 
The  value  of  gold  and  silver,  which  we  call  intrinsic,  is 
not  so,  but  is  a  value  placed  upon  those  metals  by  law. 

Gold  and  silver  are  as  abundant  for  the  real  uses  of 
those  metals  as  iron  is  for  its  real  uses,  and  \yere  the 
precious  metals  stripped  of  their  artificial,  legal  or  fiat 
value,  their  abundance  for  the  real  needs  and  uses  of 
society  would  reduce  their  intrinsic  value  to  that  of  iron 
or  lead.  The  credit  of  the  governments  of  the  world, 
the  faith  of  the  people  that  these  governments  will  re- 
ceive their  coins  at  their  face  and  weight  value,  and  that 


THE    NATURE    AND    FUNCTIONS    OF    MONEY,  63 

they  will  enforce  the  legal  tender  qualities  of*  such  coin 
are  all  that  give  them  a  value  above  their  weight  of 
iron.  Of  the  commercial  exchange  of  the  world,  Col- 
well  and  other  standard  authors  estimate  that  they  are 
made  as  follows: 

With  coin 50 

Paper  curreucy 2  50 

Other  credit  devices 97  00 

100  00 

The  banking  system  the  world  over,  supplies  a  cur- 
rency of  credit. 

The  Bank  of  England  has  long  used  about  $75,000,- 
000  of  government  debt  as  money,  irredeemable.  The 
banks  grow  rich  by  loaning  their  own  credit,  and  that 
of  their  customers.  They  loan  the  credit  of  those  who 
borrow  credit  of  them.  Through  the  machinery  for 
swapping  promises,  called  a  clearing  house,  the  banks 
are  enabled  to  form  a  ring,  and  loan,  also,  each  other's 
credits.  The  report  of  the  comptroller  shows  that  the 
banks  are  to-day  loaning  and  drawing  interest  on  three 
times  as  much  credit  as  there  is  money  in  the  countrj'. 
It  is  the  same  in  all  the  civilized  world.  Credit  of  one 
kind  and  another,  constitutes  tlie  great  bulk  of  the  world's 
medium  of  exchange,  while  the  precious  metals  consti- 
tute less  than  one-half  of  one  per  cent.  As  congress 
has  the  power,  why  then  should  it  not  coin  the  govern- 
ment credit,  make  it  legal  tender,  and  thus  supply  a 
more  uniform  medium  of  exchange,  and  one  less  expen- 
sive than  that  supplied  by  banks  and  capitalists? 

There  is  but  one  objection,  and  that  is,  it  would  deprive 
the  banks  and  money  sharks  of  their  rich  interest  har- 
vests from  loaning  their  own,  and  their  customers  credits 
for  usury.     Gold  is  not  the  money  of  the  world,  even 


64  LABOR   A2f D    FINANCE    KEVOLUTION. 

restricting  money  to  coin  and  bank  paper,  for  the  entire 
stock  of  Europe  and  America  aggregates  but  a  trifle 
over  $1,900,000,000  against  over  $3,000,000,000  of  gov- 
ernment and  bank  issues. 

The  States  are  prohibited  from  making  anything  but 
gold  and  silver  legal  tender,  but  congress  is  not;  for  the 
first  leiral  tender  the  o-overnraent  ever  coined  under  the 
constitution  was  copper,  which  was  a  full  legal  tender 
for  any  and  all  amounts.  No  one  disputes  the  right  of 
the  government  to  issue  bills  of  credit,  or  treasury  notes, 
and  the  supreme  court  has  decided  that  this  being  con- 
ceded, '•'■the  incidental  'power  of  giving  such  bills  the 
quality  of  legal  tender  follows  as  a  matter  of  course.'''' 

There  is  not  sufiicient  gold  and  silver  in  the  world  to 
serve  as  a  universal  medium  of  exchange,  hence  it  can- 
not be  a  money  of  the  world.  Bank  and  individual 
credit  lack  the  necessary  stability,  safety  and  responsi- 
bility to  constitute  a  money  of  the  world,  hence,  they 
are  not  appropriate.  The  government  credit  alone, 
based  upon  the  powers  of  its  sovereignty  and  the  com- 
bined credit,  consent  and  mutual  interest  of  society,  can 
supply  a  safe,  reliable,  ample  and  uniform  currency  to 
efl'ect  all  the  necessary  exchanges  of  commerce,  and  do 
away  with  that  class  of  vampires,  cormorants  and  mid- 
dle-men, who  now  monopolize  the  supply,  that  they  may 
reap  the  lion's  share  of  labor's  productions. 

POWER  TO  CREATE  MONEY. 

The  Constitution  of  the  United  States,  Art.  I,  Sec. 
VIII,  5,  declares  congress  shall  have  power  to  coin 
money,  regulate  the  value  thereof  and  of  foreign  coin, 
and  fix  a  standard  of  weights  and  measures. 

"  To  coin  money,"  as  used  in  the  constitution  does  not 


THE  NATURE  AND  FUNCTIONS  OF  MONEY.      65 

mean  to  shape,  fashion,  weigh,  and  stamp  pieces  of  metal 
or  paper.  It  simply  means  to  determine  wJiat  shall  con- 
stitute the  lawful  money  of  the  realm.  This  is  a  power 
inherent  in  sovereignty,  and  as  sovereignty  rests  with 
the  people  in  a  republic,  this  prerogative  was  delegated 
to  congress  to  be  exercised  for  the  people.  A  literal 
interpretation  of  the  clause  would  be:  "  Congress  shall 
liave  power  to  determine  what  shall  constitute  the  ex- 
change medium  and  lawful  tender  for  debts  in  the 
United  States."  It  certainly  does  not  mean  that  con- 
gress shall  perform  the  manual  and  mechanical  labor  of 
stamping  coin  or  notes;  if  it  does,  then  all  of  our  mints 
are  unconstitutional  institutions.  Congress  has  power 
to  determine  the  material  and  style  of  the  token  or 
thing  which  shall^  represent  the  value  of  a  dollar,  when 
such  value  is  agreed  upon  between  the  parties  to  an  ex- 
change; also  the  different  denominations  of  such  tokens, 
the  functions  they  shall  perform,  and  the  extent  and  for 
what  purposes  they  shall  be  lawful  tender  for  debts. 

The  value  of  money  is  its  purchasing  power,  which 
is  governed  by  its  volume,  or  the  relation  which  the 
total  volume  sustains  to  the  total  volume  of  the  ex- 
changeable commodities  of  a  country.  The  larger  the 
money  volume  in  proportion  to  the  exchangeable  com- 
modity volume  of  a  country,  the  less  is  the  purchasing 
power  of  the  former,  and  the  higher  are  the  prices  of 
the  latter.  Hence,  the  value  of  money  can  be  regulated 
only  by  regulating  its  volume,  and  as  this  sovereign 
power  has  been  delegated  to  Congress  in  trust  for  the 
benefit  of  all  the  people,  that  body  has  no  warrant  in 
the  constitution  to  delegate  this  important  trust  to  indi- 
viduals or  corporations  for  their  private  benefit.  Neither 
the  people  nor  Congress  have  power  to  regulate  the  in- 


Q6  LABOR   AND    FINANCE    REVOLUTION. 

trinsic  value  of  money  or  anything  else;  it  is  only  its 
exchange  value  that  they  can  regulate.  Whenever  the 
intrinsic  value  of  money  rises  above  its  exchange  value, 
it  ceases  to  serve  the  purposes  of  money,  and  goes  to 
speculating  on  its  commodity  merits. 

Jonathan   Duncan  says  of  money:  "It  may  surprise 

some  of  our  readers  to  be  told  that  from  the  reign  of 

Henry  the  First,  down  to  the  establishment  of  the  Bank 

of  England,  the  legal  tender  money  of  England  was 

fabricated  out  of  wood. 

"Its  intrinsic  value  was  no  more  than  the  value  of  the 
wood  of  which  it  was  fabricated,  but  its  representa- 
tive value  denoted  large  sums. 

"At  this  time  Exchequer  Tallies,  the  representatives 
of  value,  having  no  intrinsic  value  in  themselves,  sus- 
tained trade;  but  what  happened  when  the  tallies  were 
extino-uislied,  and  the  monev  preroo-ative  of  the  crown 
was  transferred  to  the  Bank  of  England  f 

The  reader  will  bear  in  mind  that  the  tally  system  of 
England  was  similar  to  our  greenback  legal-tender  sys- 
tem. It  supplied  a  home  currency  sufficient  for  the  de- 
mands of  commerce,  which  was  not  subject  to  the 
panics,  pressures  and  financial  disturbances  which  are 
always  liable  to  occur  from  an  exportable  currency  of 
intrinsic  value. 

The  result  upon  the  prosperity  of  the  kingdom  by  the 
retirement  of  the  legal-tender,  and  the  introduction  of 
the  gold  and  silver  basis  system  of  the  Bank  of  England, 
is  given  by  Davenant,  as  follows: 

"The  government  appeared  like  a  distressed  debtor, 
who  was  daily  squeezed  to  death  by  the  exorbitant 
greediness  of  the  lender. 

The  citizens  began  to  decline  trade,  and  to  turn  usu- 
rers. 


THE    NxVTURE    AND    FUNCTIONS    OF    MONEY.  67 

"Foreio^n  commerce  had  infinite  discouraijements. 

"We  are  f^oino:  lieadlonoj  to  destruction  with  carrvinar 
on  a  losin<^  trade  with  our  neighbors;  and  what  has 
brought  ns  to  this  loio  ebb? 

"When  paper  credit  flourished,  and  tallies  performed 
all  the  ofiices  of  money,  the  great  payments  for  lands,  or 
rich  goods,  M^ere  therefore  easily  made,  the  king's  duties 
paid,  and  all  kinds  of  business  easily  transacted." 

Just  as  now,  nnder  our  system,  the  usurious  system 
of  the  Bank  of  England  induced  capital  to  leave  the 
fields  of  production,  and  capitalists  to  invest  for  usury. 

Interest  was  more  profitable  than  production,  and 
while  the  rich,  through  usury,  grew  richer;  the  poor, 
by  production  and  excessive  taxation  to  pay  usury,  grew 
poorer. 

The  legal  tender  system  of  America  is  not  new. 

It  has  cropped  out  all  along  the  history  of  civilization, 
but  like  the  frogs  in  the  fable,  it  has  been  stoned  back 
by  Shylocks  and  usurers,  and  strangled  by  law-protected 
grged  and  selfishness. 

It  again  came  to  the  surface  in  England  from  1797 
till  1820,  during  which  period  that  kingdom  leaped  with 
giant  strides  on  the  road  of  prosperit3%  but  no  sooner 
was  the  kingdom  safe  from  the  dangers  of  foreign  foes, 
than  it  turned  upon  its  own  friends  and  defenders,  and 
crushed  their  hopes  and  prosperity  by  a  return  to  the 
damnable  system  of  contraction,  gold   basis  and  usury. 

The  United  States  was  compelled  to  adopt  the  rational 
legal-tender  system  during  the  War  of  the  Rebellion, 
but  no  sooner  had  peace  been  restored  when  the  old 
British  system  of  bankruptcy,  desolation  and  death 
was  attempted  to  be  saddled  upon  us  again. 

It  is  very  hard  to  divorce  the  public  mind  from  the 


68  LABOR    AND    FINANCE    REVOLUTION. 

idea  that  money  must  necessarily  be  a  thing,  and 
that  thing,  possessed  of  the  intrinsic  value  of  its  face 
or  stamp. 

As  the  body  of  man  possesses  no  more  of  intrinsic 
value  than  a  lump  of  earth  of  its  weight,  so  should  the 
body  of  money  possess  no  more  intrinsic  value  than  its 
weight  of  the  cheapest  product  of  earth. 

It  is  not  the  body  of  man,  or  the  material  of  which  it 
is  made,  that  constitutes  the  wealth  of  the  soul,  but  that 
invisible  element,  or  spirit,  breathed  into  it,  and  stamped 
upon  its  face,  by  the  sovereign  power  of  the  universe. 

A  lump  of  gold  weighing  25.8  grains,  troy,  is  not  a 
dollar.  It  will  not  pay  a  dollar  of  debt  in  any  country 
on  the  globe.  It  is  not  money.  But  without  taking 
from,  or  adding  to,  it  a  particle  of  matter,  we  pass  it  iin- 
der  the  mint  dies,  and  behold  it  comes  out  a  living,  legal 
tender,  debt-paying  dollar. 

We  lay  it  on  the  railroad  track,  allow  a  train  of  cars 
to  run  over  it,  and  although  it  has  lost  none  of  its 
weight,  fineness  or  intrinsic  value,  the  dollar  has  fled,  it 
is  no  longer  money,  and  will  not  legally  pay  a  debt  of 
ten  cents. 

Where  has  the  dollar  gone? 

Where,  and  what,  was  that  element,  or  principle  called 
money,  or  a  dollar? 

In  its  crude  natural  state  it  did  not  possess  it.  It 
went  under  the  mint  dies  and  came  out  with  a  soul  of 
money — a  living  legal  tender.  It  possessed  a  new,  and 
a  debt-paying  function,  which  it  did  not  before  possess. 

Under  the  car  wheel  it  lost  that  function,  or  quality. 
Its  legal  tender  spirit  was  driven  out  of  it.  It  became 
a  dead  commodity.     Its  money  soul  had  departed. 

Now,  what  is  money? 


THE    NATURE    AND    FUNCTIONS    OF    MONEY.  69 

Not  the  material  body  of  25.8  grains  of  metal,  for 
although  that  still  existed  before  it  went  to  the  mint, 
and  after  the  car  wheels  passed  over  it,  the  monej^  prin- 
ciple was  not  in  it.  Money,  then,  is  not  material,  nor 
does  it  possess  intrinsic  value;  for  the  intrinsic  value  of 
25.8  grains  of  gold  was  not  changed  from  the  time  it 
came  from  the  ore  bed  till  its  flattened  form  was  taken 
from  under  the  car  wheel. 

If  money,  then,  is  the  spirit  of  legal  tender  breathed 
into  an  organic  or  material  form  by  the  sovereign  power 
of  the  government,  as  the  spirit  of  man  is  breathed  by 
God  into  the  soul's  clayey  tenement,  why  clamor  for  a 
body,  or  hope  to  obtain  an  equal  in  intrinsic  value  to 
the  spirit  that  inhabits  it? 

As  Pagans  worship  a  material  deity  of  wood  or  stone, 
so  let  financial  idolators,  who  cannot  comprehend  or 
grasp  the  idea  of  the  spirit  of  money,  worship  the  im- 
age of  gold  and  silver,  while  a  higher  wisdom,  a  more 
refined  civilization,  and  a  more  exalted  manhood  aband- 
on this  Pagan  materialism,  and  substitute  the  true  and 
the  living. 

VALUE. 

E.  P.  Elder,  in  his  treaties  on  political  enconomy,  says: 

"  Money  is  no  more  a  standard  of  the  value  of  the  things  exchanged 
than  is  any  other  commodity." 

Speaking  of  the  precious  metals,  Adam  Smith  says: 

*'  Constantly  varying  in  their  own  value,  they  can  never  be  made 
an  accurate  measure  of  the  value  of  other  commodities." 

Colwell,  in  his  Ways  and  Means  of  Payment,  says: 

"  Another  attribute  generally  given  to  the  precious  metals  is  that 
they  are  a  standard  of  value. 

"This  is  inaccurate. 
_  "  Gold  cannot,  in  the  mint,  be  made  the  standard  for  silver,  nor  can 
silver  be  made  the  standard  for  gold.    Much  less,  taking  the  whole 


70  LABOR   AND    FINANCE    REVOLUTION. 

range  of  articles  for  human  consumption,  can  tliey  be  a  standard  of 
value  to  which  all  can  be  referred.  The  term  standard  is,  then,  inac- 
curately applied,  when  it  is  used  with  any  signification.  If  gold  is  a 
standard  at  all,  It  is  a  standard  of  payment,  but  not  of  value." 

We  can  measure  a  quart  of  milk  with  a  quart  meas- 
ure, and  that  measure  will  measure  that  amount  a  thou- 
sand diflferent  times,  and  during  as  many  different  years. 
But  who  ever  heard  of  a  dollar,  no  matter  how  "honest" 
it  was,  or  how  universally  the  world  recognized  it  as 
such,  that  would  measure,  or  represent,  the  value  of  a 
given  amount  of  wheat  any  two  years,  or  even  two  days, 
in  succession? 

If  money  measures  values,  there  would  be  no  neces- 
sity for  "price  currents,"  "market  reports,"  goods 
marking,  or  bantering  in  trade.  When  we  wish  to 
measure  the  value  of  anything,  we  do  not  approach  it 
with  coin  or  legal  tender.  An  experienced  lapidary  is 
.better  than  all  the  gold  in  Christendom  to  determine 
the  value  of  a  jewel.  If  we  w^ant  a  piece  of  property 
appraised,  we  do  not  employ  gold,  but  intelligent  ex- 
perience, and  sound  judgment.  After  intelligence  has 
ascertained  the  value,  we  express  it  in  money  terms. 
The  unit  of  value,  the  dollar  for  instance,  is  used  to  ex- 
press the  value  which  intelligence  has  determined.  We 
measure  value,  then,  with  brains,  and  express  it  in  terms 
of  money,  as  we  measure  yards  by  the  stick,  and  ex- 
press them  in  numbers.  „So  money  is  no  more  the 
measure  of  values  than  figures  are  the  measure  of  yards. 

Price  is  the  relation  of  commodities  to  the  money  of 
account.  Value  is  the  relation  of  commodities  to  the 
labor,  or  force,  usually  required  to  produce  them. 

Adam  Smith  says: 

"Labor,  never  varying  in  its  o  .u  value,  is  alone  the  ultimate  and 
real  standard  by  which  the  value  of  all  commodities  can,  at  all  times 
and  places,  be  estimated  aud  compared.  It  is  their  real  value ;  money 
is  their  nominal  price  only."  , 


THE    NATURE    AND    FUNCTIONS    OF    MONEY.  71 

Carey  defines  value  as  ^'■simply  the  measure  of  resist- 
ance that  labor  and  skill  meet  in  subduing  natural  ob- 
jects to  human  use.'^ 

The  value  of  commodities  is  not  changed  by  high  or 
low  price.  For  instance,  wheat  may  be  a  dollar  a  bushel 
in  gold  in  Canada,  and  two  dollars  a  bushel  in  green- 
backs in  the  United  States.  Supposing  a  Canadian 
farmer  and  an  Illinois  farmer  meet  in  New  York  with 
a  cargo  of  fifty  bushels  of  wheat  each,  the  Canadian  re- 
ceiving one  dollar  per  bushel  in  gold,  and  the  Illinois 
farmer  two  dollars  per  bushel  in  greenbacks.  Have 
they  received  equal  value,  or  the  representative  of  equal 
value?  Certainly,  for  the  $50  of  gold  will  purchase  the 
same  quantity  of  labor,  dry  goods,  groceries  or  other 
commodities  that  the  $100  of  greenbacks  will.-  The 
only  difference  is,  the  greenbacks  will  pay  twice  the 
amount  of  debts  in  the  United  States  that  the  gold  will 
in  Canada,  but  their  purchasing  power  is  no  greater. 
The  larger  the  volume  of  money,  the  more  active  its  cir- 
culation, the  more  lively  and  the  better  times  are,  and 
the  higher  prices  are.  It  matters  not  how  high  ])rices 
are  in  the  currency  of  the  country,  it  does  not  change 
the  value  relation  between  labor  and  commodities.  The 
proceeds  of  the  sale  of  high  priced  commodities  in  this 
country,  will  purchase  no  more  or  less  of  English  man- 
ufactures, than  the  pi'oceeds  6f  the  sale  of  the  same  com- 
modities in  England,  or  Germany,  where  prices  may  be 
50  per  cent.  less.  Wheat  may  be  five  dollars  per  bushel 
in  American  money,  and  but  one  dollar  in  English 
money,  while  its  value  may  be  the  same  in  each  coun- 
try, measured  by  the  purchasing  power  of  its  proceeds. 

The    money  of   the    conntry   should   be    sufficiently 
abundant  to  render  its  circulation   free  and  easy,  and 


72  LABOR    AND    FINANCE    REVOLUTION. 

readily  obtainable  at  all  times.  The  question  of  great 
importance  is,  after  the  volume  of  money  and  general 
prices  are  once  established,  to  keep  them  uniform  and 
unvarying.  If  prices  drop,  debtors  are  wronged.  If 
they  advance  above  what  they  were  when  the  debt  was 
contracted,  the  creditor  is  wronged.  All  debts  should 
be  paid  in  a  money  having  the  same  purchasing  power, 
no  more  nor  less,  than  money  possessed  at  the  time  the 
obliijation  was  incurred.  It  is  the  great  decline  in 
prices,  and  the  appreciation  of  money,  giving  creditors 
double  the  value  of  their  dues,  robbing  debtors  of  half 
the  value  of  their  labor  and  products,  that  has  given  rise 
to  the  greenback  movement. 

To  pay  to-day,  when  prices  are  down  to  a  gold  valua- 
tion, debts  contracted  when  prices  corresponded  to  thirty 
or  forty  dollars  per  capita  of  circulation,  is  an  out- 
rageous swindle,  nothing  short  of  robbery  upon  ev^ery 
debtor  and  tax- payer  in  the  nation.  Why  should  iiine- 
tenths  of  the  people  be  robbed  for  all  time  to  come,  for 
the  sake  of  feathering  the  nests  and  double  paying  the 
other  tenth,  who  neither  produce  wealth,  nor  contribute 
to  the  support  of  the  government  by  whose  laws  they 
receive  their  unjust  gains? 

If  there  were  no  debts  drawing  fixed  amounts  of  in- 
terest, the  gold  basis  for  money  would  have  no  advocates. 
The  mountains  of  the  world's  debt,  whose  fixed  interest 
yields  colossal  annual  fortunes  to  their  owners,  were 
created  almost  wholly  when  prices  were  very  high,  and 
money  very  cheap,  and  to  double  the  value  of  these 
debts,  and  the  purchasing  power  of  their  annual  income, 
the  dollars  in  which  it  lias  to  be  paid  have  been  doubled 
in  value  by  limiting  currency  to  a  gold  basis  and  de- 
pressing prices  to  a  gold  standard.     This  injustice  is 


THE  NATURE  AND  FUNCTIONS  OF  MONEY.      73 

what  the  greenback  party  aims  to  overcome  by  cutting 
loose  from  gold  and  greenback  equiv^alency,  and  lessen- 
ing the  purchasing  power  of  money,  by  increasing  its 
volume. 

PRICES. 

Prices  are  the  estimate  of  mankind  of  the  relative 
value  of  one  thing  to  another,  «s  compared  with  money. 
The  term  "  price  "  is  ordinarily  employed  to  denote  the 
amount  of  value  possessed  by  a  given  thing  expressed 
in  terms  of  money.  Thus,  when  we  say  ''wheat  is  worth 
a  dollar  a  bushel,"  a  dollar  is  the  price  of  a  bushel  of 
wheat.  But  while  we  constantly  use  lauijuaffe  in  such  a 
way  as  to  imply  that  the  value  of  the  thing  to  wliich  we 
affix  the  "price"  is  the  sole  fact  we  wish  to  determine, 
in  reality,  we  put  a  price  on  the  money  as  much  as  we 
do  on  whatever  we  "  price."  When  we  say  "  corn  is 
worth  a  half  a  dollar  a  bushel,"  we  virtually  say  that 
the  price  of  a  dollar  is  two  bushels  of  corn.  The  aver- 
age scale  of  prices  measures  the  value  of  money  as 
effectually  as  money  measures  the  prices  of  commodi- 
ties. The  scale  of  prices  is  governed  chiefly  by  two  in- 
fluences. 

First,  the  volume  of  legal  tender  money  in  circulation; 
for,  increase  the  volume,  and  the  price  of  labor  rises, 
and  that  raises  the  price  of  commodities.  Diminish 
the  amount  of  money,  and  wages  and  commodities  fall 
in  price.  Money  is  like  everything  else.  The  scarcer 
it  is,  the  dearer  it  is,  and  the  more  labor  or  commodities 
it  takes  to  purchase  a  given  sum. 

Second,  the  extent  to  which  public  and  private  credit 
is  employed  in  the  form  of  notes,  checks,  bills  of  ex- 
change, etc.     It  is  n(jt  the  amount  of  money  in  existence 


74  LABOR   AND    FINANCE   REVOLUTION. 

wliicli  determines  prices,  so  miicli  as  the  amount  in  ac- 
tive circulation.  From  1S66  to  1873  the  circulatine; 
medium  was  diminished  bj  the  funding  of  over  a  thou- 
sand million  greenbacks  and  treasury  notes,  still  prices 
were  kept  up  by  the  substitutions  of  inflated  credits  in 
place  of  money  until  the  crash  of  the  latter  year  pro- 
duced a  sudden  and  actual  contraction  of  money,  and 
credit,  of  over  a  thousand  million  dollars  in  a  day,  which 
caused  prices  to  fall  like  the  forest  before  a  cyclone. 

Prior  to  tliis  time,  prices  had  become  established,  and 
all  debts  and  contracts  were  made  with  reference  to  these 
prices.  But  the  contraction  of  the  currency  enhanced 
the  value  of  money,  depreciated  prices,  and  robbed  every 
man  who  sustained  the  relation  of  debtor,  or  contractor, 
whose  obligations  were  incurred  on  the  scale  of  prices 
previously  existing. 


CHAPTER  V. 

COLONIAL  MONEY. 

From  "Sumner's  Reminiscences  of  Colonial  Times," 
we  learn  that  for  many  generations  after  the  first  settle- 
ment of  the  Colonies,  the  work  of  production  was  slow 
and  laborious,  and  the  surplus  products,  at  least  such  as 
could  find  their  way  to  foreign  markets,  were  hardly  suf- 
ficient to  procure  in  return  the  common  necessaries  of 
life.  The  small  sums  of  money  brought  to  the  country 
by  the  settlers  were  soon  exhausted,  sent  abroad  for  mer- 
chandise; and  trade,  for  the  most  part,  had  to  be  carried 
on  by  the  inconvenient  method  of  barter.  The  Indians 
found  along  the  shores  of  Long  Island  Sound,  were 
more  advanced  in  civilization  than  those  further  north, 
and  used  a  circulating  medium  of  exchange,  consistino- 
of  beads  of  two  kinds,  one  white,  made  out  of  the  end 
of  a  periwinkle  shell,  and  the  other  black,  made  out  of 
the  dark  part  of  a  clam  shell.  They  were  rubbed  down 
and  polished,  and,  when  artistically  arranged  in  strings 
or  belts,  formed  objects  of  real  beauty.  These  beads  circu- 
lated among  the  Indians  as  money,  one  black  bead  being 
reckoned  as  worth  two  white  ones,  and  were  kninvn  as 
Wampurn.  The  Colonists  came  to  use  them,  first  in 
their  trade  with  the  Indians,  and  then  among  themselves. 
In  Massachusetts  they  became  by  custom,  the  common 
currency  of  the  colony,  and  were  made  a  legal  tender  in 
small  sums.  The  first  issue  of  paper  money  made  in 
the  Colonies,  was  made   by  Massachusetts  in   1690,  six 

75 


76  LABOR    AND    FINANCE    BP: VOLUTION. 

years  before  the  establishment  of  the  Bank  of  England. 
An  expedition  had  been  sent  ont  against  Canada,  and, 
retnrning  without  spoils,  and  in  a  state  of  misery,  the 
soldiers  were  clamorous  for  their  pay.  So  £7,000  were 
issued  in  notes  from  5s.  to  £5.  The  form  of  these  notes 
or  bills  was  as  follows: 

"  This  indented  bill  of  ten  shillings,  due  from  the 
Massachusetts  colony  to  the  possessor,  shall  he  iii  value 
equal  to  money ^  and  shall  be  accordingly  accepted  by 
the  treasurer,  and  receivers  subordinate  to  him  in  all 
public  payments,  and  for  any  stock  at  any  time  in  the 
treasury."  They  circulated  at  par  with  coin  for  twenty 
years,  until  redeemed.  In  1703,  another  issue  of  £15,- 
000  was  authorized,  which  were  made  a  legal  tender  for 
private  debts.  In  1716,  another  issue  to  the  amount  of 
£150,000  was  authorized,  to  be  distributed  among  the 
different  counties  of  the  province,  and  to  be  put  into  the 
hands  of  five  trustees  in  each  county,  to  be  appointed 
by  the  legislature,  to  be  let  out  on  real  estate  securitj^  in 
the  county  in  specific  sums  for  the  space  of  ten  years, 
at  5  per  cent,  per  annum.  Another  act  for  £50,000,  in 
bills,  was  passed  in  1720,  which  resulted  in  clearing 
Massachusetts  of  debt  in  1773.  In  1720,  bills  were 
issued  by  the  colony  of  Rhode  Island,  and  were  made 
legal  tender  for  all  debts.  The  colony  of  Connecticut 
issued  similar  bills  at  various  times  between  1709  and 
1731.  New  York  began  to  issue  bills  in  1709;  Penn- 
sylvania, in  1723;  I^Iaryland,  in  1733;  Delaware,  in 
1739;  Virginia,  in  1755;  and  South  Carolina,  in  1703. 
The  first  emission  of  bills  by  Virginia  bore  5  per  cent, 
interest,  and,  according  to  Jefferson,  in  a  very  short  time 
not  one  of  them  was  to  be  found  in  circulation.  They 
were  locked  up  for  the  interest.     "  We  then,"  savs  Jef- 


COLONIAL   MONEY.  77 

ferson,  '''  issued  bills  hottomed  on  a  redeeming  tax,  but 
bearing  no  interest — these  were  readily  received,  and 
never  depreciated  a  farthing.  Several  hundred  thou- 
sand dollars  of  this  colonial  paper  money  remained  in 
circulation  more  than  twenty  years  at  par  with  gold, 
with  no  other  basis,  or  advantage,  than  being  receivable 
for  debts  and  taxes." 

But  in  1751,  Parliament,  controlled  by  the  money 
power  of  Great  Britain,  and  becoming  alarmed  at  the 
prosperity  and  growing  independence  of  the  colonies, 
passed  an  act  forbidding  the  issue  of  any  more  paper 
money,  and  in  1763  all  colonial  acts  for  issuing  paper 
money  were  declared  by  act  of  Pari  lament  void.  Dr. 
Franklin  visited  England  and  protested  against  the  act, 
but  without  avail.  He  stated  to  the  British  authorities 
that  before  the  issue  of  colonial  money,  the  colonies  were 
stripped  of  gold  and  silver.  That  there  were  great  dif- 
ficulties for  the  w^ant  of  money,  as  trade  had  to  be  car- 
ried on  by  the  extremely  inconvenient  method  of  bar- 
ter. But  that  the  introduction  of  colonial  paper  money 
had  given  new  life  to  business,  promoted  greatly  the 
settlement  and  development  of  the  country,  whereby 
the  provinces  had  greatly  increased  in  inhabitants,  and 
their  exports  had  been  increased  tenfold. 

This  Parliamentary  prohibition,  more  than  anything 
else,  led  to  the  discontent  which  resulted  in  the  Eevolu- 
tion.  The  colonial  legal  tender  greenback  system  caused 
rich  and  powerful  states  to  spring  up  in  the  wilderness 
as  if  by  magic,  but  then,  as  now,  it  was  liable  to  edu- 
cate society  into  a  better  system  than  that  of  specie,  and 
make  production  independent  of  the  usuer.  It  had  to 
be  strangled.  The  shylocks  of  Change  Alley  feared  its 
influence  upon  the  institutions  of  the  old  world,  and  as 


78  LABOR   AND    FINANCE    REVOLUTION. 

the  ruling  powers  of  all  monarchies  are  but  the  tools  of 
the  Money  Power,  Parliament  had  to  obey. 

During  the  Revolutionary  struggle,  the  colonies  or 
states  issued  what  has  since  been  known  as  continental 
money,  a  description  of  which,  from  the  pen  of  Warwick 
Martin,  is  given  in  the  following  chapter. 


CHAPTER  VI. 
CONTINENTAL    MONEY 

ACT    OF   JUNE  .25,    1775. 

This  act  was  passed  more  than  one  year  before  inde- 
pendence was  declared.  It  authorized  the  issue  of  $2,- 
000,000  of  notes,  which   read  as  follows:     ''This   note 

entitles  the  bearer  to  receive Spanish  mill  dollars, 

or  the  value  thereof  in  gold  or  silver,  according  to  the 
resolution  of  Congress  of  the  10th  of  May,  1775." 

We  need  not  say  that  that  was  neither  money  nor  a 
promise  to  pay  money  emanating  from  any  individual 
State  or  nation.  The  note  authorized  the  party  holding 
it  to  receive  theretor  Spanish  mill  dollars,  or  their  equiv- 
alent in  gold  or  silver;  but  it  did  not  obligate  any  person, 
State  or  nation  to  pay  said  dollars,  or  other  coin. 

THE    ACT    OF    JULY    25,    1775. 

This  act  provides  for  the  issue  of  another  $1,000,000 
of  these  notes.  The  act  of  December  26,  1775,  also 
provides  for  the  issue  of  $3,000,000  more  of  said  notes, 
making  $6,000,000  issued  before  Independence  day. 

This  act  also  provided  for  the  sinking,  as  it  was  termed, 
of  all  notes  issued  under  acts  of  Congress.  Each  colony 
was  to  appoint  a  treasurer,  who  should  give  security. 
Each  colony  was  to  provide  ways  and  means  to  sink  its 
portion  of  the  bills  of  credit  authorized  by  Congress. 

79 


so  LABOR   AND    FINANCE   KEVOLUTION. 

The  amount  to  be  redeemed  by  each  colony  was  to  be  in 
proportion  to  population. 

A  census  was  to  be  taken  to  ascertain  the  number  of 
people  in  each  colony.  Until  this  was  completed,  the 
whole  number  of  people  in  the  colonies  was  assumed  at 
3,000,000  souls.  The  estimated  number  in  each  colony 
is  given,  and  the  amount  of  liability  of  each  for  the  bills 
is  stated.  The  bills  were  not  to  be  redeemed  by  the 
States  united  as  a  nation,  but  by  the  States  in  their  indi- 
vidual capacity — each  State  acting  for  itself. 

Each  colony  was  to  commence  redeeming  the  notes 
in  1779,  and  close  in  1783 — being  eight  years  from  the 
time  they  were  issued.  The  treasurers  of  the  colonies 
were  required  to  receive  the  bills  for  taxes  imposed  to 
take  them  up,  but  not  for  any  other  taxes.  Tliis  was  a 
strange  provision,  tending  to  depreciate. 

On  the  2Sth  of  December,  1779,  Congress  took  notice 
of  a  report  then  in  circulation,  to  the  eiFect  that  Congress 
never  intended  to  redeem  the  notes,  Congress  pronounced 
this  an  unfounded  charge,  which  did  them  great  injust- 
ice, and  greatly  injured  the  bills  in  the  estimation  of  the 
people.  They  passed  an  act  pledging  the  faith  of  the 
United  Colonies  for  the  payment  of  these  bills. 

On  December  31,  1779,  Congress  ordained  that  the 
$15,000,000  due  from  the  colonies  be  paid,  and  that 
eighteen  years  be  granted  them  instead  of  four,  as  pre- 
viously provided,  in  which  to  make  the  balance  of  the 
payments,  and  that  the  amount  of  each  annual  payment 
be  limited  to  $6,000,000,  commencing  in  1780. 

About  $200,000,000  of  this  money  were  issued.  We 
can  not,  in  this  article,  refer  to  all  the  acts  in  proof. 
We  point  out  the  defects  in  this  money,  and  show  the 
causes  of  its  depreciation  in  the  following  manner: 


CONTINENTAL    MONEY.  81 

The  States  were  contending  with  the  greatest  nation 
on  earth.  Her  armies  had  generally  been  victorious  on 
land.  She  was  conceded  to  be  the  mistress  of  the  seas. 
The  States  were  poorly  prepared  for  war  with  such  a 
power.  They  had  no  army,  no  navy,  no  fortifications^ 
no  arms,  no  ammunition,  no  credit,  no  money.  The 
odds  were  immensely  against  them,  viewed  from  a  mili- 
tary standpoint.  The  contest  was  not  only  doubtful, 
but  from  any  standpoint  except  justice  and  right,  was 
overwhelmingly  in  favor  of  Great  Britain.  Under  these 
circumstances  it  would  have  been  difficult  to  maintain  a 
State  paper  circulation  at  par  had  Congress  adopted  the 
best  method  of  doing  it.  But  with  the  means  adopted, 
it  is  astonishing  that  any  sujscess  attended  their  efibrts 
to  keep  the  Government  circulation  at  par. 

At  the  time  $6,000,000  of  this  money  were  issued,  in- 
dependence had  not  been  declared.  The  States  were  still 
colonies,  and  the  people  and  Congress  subjects  of  Great 
Britain,  stvlins^  themselves  in  their  communication  to 
the  throne,  "Your  Majesty's  most  faithful  subjects." 
They  were  engaged  in  petitioning  for  and  demanding 
their  rights  as  "British  subjects."  They  were  also  pre- 
paring to  defend  their  rights  and  maintain  them,  if  de- 
nied to  them  by  the  mother  country.  To  raise  and  equip 
an  army  for  that  purpose,  was  at  first  their  only  object 
in  issuing  these  bills  of  credit.  At  this  time  the  United 
States  was  not  a  nation.  The  power  delegated  to  Con- 
gress by  the  States  extended  only  to  soliciting  and  de- 
manding a  restoration  of  rights,  and  to  prepare  for  war, 
if  need  be.  Congress  was  little  else  than  an  advisory 
counsel  to  the  States.  They  possessed  no  power  to  im- 
pose and  collect  taxes  or  duties,  and  did  not  attempt 
it.  They  exacted  that  the  States  should  impose  taxes 
6 


82  LABOR    AND    FINANCE    REVOLUTION. 

and  collect  them;  but  the  States  could  comply  with  the 
wishes  of  Congress  in  this  behalf,  or  neglect  to  do  so, 
and  some  of  them  did  the  latter. 

The  bills  of  credit  emitted  by  Congress  were  not  made 
legal  tender  in  payment  of  private  debts,  and  weve  not 
made  receivable  for  debts  due  Congress  or  the  colonies. 
Congress  had  no  debts  due  them.  They  collected  no 
duties  on  imports,  or  internal  revenue.  These  impo- 
sitions and  collections  were  confined  to  the  States.  To 
Congress  it  was  all  outgo  and  no  income.  They  made 
their  own  money,  and  paid  it  out  to  equip  and  sustain  the 
army,  and  to  support  a  limited  civil  service.  There  was 
but  one  means  through  which  the  money  issued  and  paid 
out  by  the  Continental  Treasurer  could  get  back  into 
his  hands.     Of  this  we  shall  speak  hereafter. 

Previous  to  1779  the  faith  of  the  States,  as  expressed 
by  Congress*  was  pledged  for  the  redemption  of  the  bills 
emitted;  but  the  faith  of  Congress,  or  of  a  National 
Government  of  any  kind,  was  not  pledged.  The  law 
did  not,  at  any  time,  read  that  Congress  would  pay,  or 
that  the  Treasurer  would  pay,  but  that  the  States  as  in- 
dividuals, not  collectively,  would  pay.  Everybody  knew 
that  the  duty  of  paying  or  redeeming  the  bills  devolved 
upon  the  States  in  their  individual  capacity,  not  upon 
Congress  or  a  nation. 

Each  State  was  bound  only  for  its  portion.  The  debt 
was  divided  among  the  States  according  to  population. 
This  fact,  at  the  beginning  of  1799,  or  thereabout,  was 
extensively  circulated  among  the  people,  to  the  prejudice 
of  Congress,  and  to  the  depreciation  of  the  bills.  Con- 
gress noticed  the  change,  and  pledged  the  faith  of  the 
United  States  for  the  redemption  of  the  bills,  and  soon 
after  commenced  giving  certificates  of  indebtedness 
bearing  interest  for  them. 


CONTINENTAL    MONEY.  83 

But  another  most  fatal  mistake  in  the  issue  of  this 
money  was  in  making  it  payable  not  only  in  coin,  but  in 
that  which  was  at  a  premium  over  other  coin.  It  should 
not  have  been  redeemable  in  coin  of  any  kind;  it  should 
have  been  made  legal  tender — lawful  money.  The  States 
had  only  about  $5,000,000  of  coin,  all  told.  It  was 
impossible  to  make  the  redemption  in  coin,  and  no 
such  promise  should  have  been  given.  If  no  coin  had 
been  promised  in  the  law,  or  in  the  notes,  no  one  would 
have  expected  coin,  and  it  would  not  have  been  demanded. 
But  the  law  expressly  promised  coin.  When  the  people 
presented  the  notes  at  the  treasury  of  a  State,  or  that  of 
Congress,  and  demanded  the  fullillment  of  the  promise, 
and  learned  that  the  coin  could  not  be  paid,  the  credit 
of  the  notes  was  injured — though  the  people  stood  the 
disappointment,  and  continued  to  receive  and  pay  the 
money  until  another  injurious  circumstanced 'occurred. 

Very  unwisely,  the  Continental  money  was  not  made 
as  though  intended  to  circulate  as  money.  For  the  pur- 
pose of  giving  it  credit  above  other  notes,  it  was  made 
payable  in  coin,  which  was  at  a  premium.  The  failure 
to  pa}^  coin  for  it,  as  promised,  reduced  it  somewhat  in 
value;  and  the  failure  of  the  States  to  redeem  it,  as  pro- 
vided by  law,  reduced  it  still  lower.  The  extension  of 
time  in  which  the  States  were  to  redeem  the  notes,  from 
four  years  after  1779  to  nineteen  years  after  that  time, 
had  a  still  greater  depressing  effect. 

The  fact  that  the  printing  of  the  notes  was,  of  neces- 
sity, poorly  done,  caused  them  to  be  counterfeited  in 
large  quantities,  so  that  few  persons  could  know  the 
good  notes  from  the  counterfeits.  The  people  feared  to 
receive  them.  This  counterfeiting  was  a  trick  of  the 
enemy  to  destroy  the  money. 


84  LABOR    AND    FINANCE    REVOLUTION. 

At  the  time  these  notes  began  to  depreciate,  it  was 
the  darkest  in  the  Revohition.  Our  armies  had  not  been 
successful  in  battle.  The  British  had  been  reinforced. 
The  contest,  with  men  of  weak  faith,  was  doubtful.  The 
people  did  not  need  to  be  told  that  if  the  cause  failed 
the  money  vv^ould  be  worthless.  The  cause  of  the  col- 
onies depended  upon  sustaining  the  money  of  the  col- 
onies. Great  Britain  well  knew  this;  and  for  the  pur- 
pose of  destroying  the  Revolution,  the  armies  of  the 
Crown,  with  the  aid  of  British  gold  and  silver,  and  their 
allies,  the  Tories,  used  all  their  powers  to  cut  off  from 
the  colonies  the  sinews  of  war,  and  thus  to  destroy  the 
American  cause.  Much  of  the  depreciation  of  the  bills 
of  credit  was  owing  to  these  efforts. 

Had  this  money  been  both  issued  and  redeemable  by 
the  nation  or  Government;  had  the  Government  pos- 
sessed the  power  to  impose  duties  on  imports  and  inter- 
nal taxes,  and  to  collect  them;  had  the  bills  been  made, 
by  the  act  creating  them,  legal  tender  in  payment  of  all 
private  debts  and  receivable  for  debts  due  the  nation  and 
individuals,  with  power  in  the  General  Government  to 
make  its  authority  respected;  had  nothing  been  said  in 
the  law  or  in  the  notes  about  paying  in  specie,  as  was 
done  on  the  issue  of  our  treasury  notes,  and  no  provi- 
sion been  made  for  the  States  to  receive  them  in  coin, 
not  more  than  $50,000,000  need  to  have  been  issued. 
The  money  paid  out  would  have  returned  to  the  treas- 
ury for  taxes  and  duties,  and  could  have  been  re -paid 
out.  This  would  have  obviated  the  necessity  of  issuing 
three-fourths  of  the  bills  issued,  and  kept  those  out  at 
par,  or  nearly  so,  with  coin.  But  whether  par  with  coin 
or  not,  they  would  have  been  a  sure,  sound  circulation, 
with  which  the  loyal  people  would  hav^e  been  satisfied. 


CONTINENTAL    MONEY.         .  85 

But  our  fathers,  though  great  and  wise  in  counsel,  and 
brave  and  patriotic  in  battle  and  trial,  do  not  appear  to 
have  understood  the  proper  method  of  conducting  the 
finances  of  a  great  people  in  time  of  war.  They  were 
misled  by  the  idea  that  a  people  in  a  protracted  war 
could  sustain  a  specie  currency,  or  one  based  upon  cur- 
rency, and  that  when  the  able-bodied  men  of  the  nation 
were  in  camp  or  on  the  battle-field,  instead  of  at  the 
plow  or  anvil,  and  the  productive  industries  of  the  coun- 
try were  prostrate,  millions  upon  millions  could  be  col- 
lected from  the  people  to  supply  armies,  or  to  redeem  a 
currency  by  which  they  were  supplied.  Their  fatal 
error  was  in  making  their  bills  payable  in  premium 
coin,  on  demand,  and  providing  that  the  money  should 
be  redeemed  in  eight  years,  by  taxes  collected  from  an 
impoverished  people,  instead  of  issuing  the  bills  as  a 
permanent  circulation,  making  them  legal  tender  and 
par  with  coin  by  receiving  and  paying  them  for  every- 
thing for  which  coin  was  paid  and  received.  What 
would  have  been  the  result  if,  in  1862  and  1863,  the 
United  States,  with  all  their  resources  and  power,  had 
pursued  the  policy  of  our  father  in  1775  and  1776.  It 
is  impossible  to  compute  the  millions  lost  by  the  Amer- 
ican people  in  the  last  100  years  by  the  specie  delusion. 
But  this  money  was  wanting  in  all  these  monitary  char- 
acteristics. At  all  times,  when  debts  were  to  be  paid 
by  the  Continental  Congress,  it  was  necessary  to  issue 
new  money,  instead  of  paying  tlierefor  that  which  had 
been  received  into  the  Treasury  for  taxes  or  duties,  or  in 
exchanire  for  interest  certificates  and  bonds.  The  circu- 
lation  therefore  increased  to  four  times  the  wants  of 
trade  and  commerce,  and  became,  for  this  and  the  other 
reasons  assigned,  depreciated. 


86  LABOR    AND    FINANCE    REVOLUTION. 

But  depreciated  and  imperfect  as  this  money  was,  it 
enabled  our  fathers  to  achieve  their  and  our  independ- 
ence. But  for  the  Continental  money  the  Revolution 
would  have  been  a  failure.  It  enabled  Congress  to 
equip  and  sustain  armies  until  1780,  when  other  nations 
espoused  our  cause  and  loaned  us  money,  and  aided  in 
fighting  our  battles.  For  four  long  years  of  war  this 
was  our  only  money.  In  ITSO  and  1781  France  became 
our  ally  and  loaned  us  $5,000,000  in  coin. 

We  confess  to  a  want  of  admiration  of  those  states- 
men who  compare  the  United  States  of  America  in  1879 
to  the  Continental  government  of  1775  and  1776,  and 
the  paper  issues  of  the  Continental  Congress,  with  those 
of  the  United  States  at  this  time;  and  insist  that  because 
the  former  money  was  a  partial  failure  the  latter  must 
of  necessity  be.  We  have  little  or  no  confidence  in  the 
honesty  or  patriotism  of  those  hired  authors  who  now, 
at  the  bidding  of  Wall  Street,  point  to  the  example  of 
the  Continental  government  as  a  warning  to  the  great- 
est nation  on  earth  not  to  issue  paper  money.  Let  them 
be  reminded  of  the  following  facts: 

Our  fathers  were  not  at  the  time  a  nation.  They  had 
pledged  their  lives,  their  fortunes  and  their  sacred  honor 
i  n  support  of  their  right  to  be  independent.  We,  through 
their  sacrifices,  have  been  a  nation  nearly  100  years.  They 
numbered  only  3,000,000  of  souls;  we  number  50,000,- 
000.  Thirteen  States  composed  the  confederation;  we 
number  thirty-eight  States  and  ten  Territories.  Their 
western  boundary  was  the  Mississippi  River;  ours  is  the 
Pacific  Ocean.  They  had  no  fortifications,  no  army,  no 
navy,  no  canals,  no  railroads,  no  steamboats,  no  steam- 
ships, no  constitution  nor  laws  made  thereunder;  no 
legislative,  judicial,  and  executive  departments  of  the 


CONTINENTAL    MONEY.  *  87 

Government;  no  national  duties  on  imports,  no  national 
internal  revenue,  no  manufactories,  no  experienced  arti- 
sans, no  money,  no  credit,  no  army,  no  navy,  and  tlieir 
foreign  commerce  was  at  the  time  cut  oft'.  We  have 
fortifications  at  every  assailable  point;  can  in  a  short 
time  put  a  million  of  brave  men  under  arms,  well 
equipped,  and  can  cover  the  ocean  with  our  ships.  Our 
canals  connect  our  inland  seas  with  the  ocean.  The 
whole  Union  is  chequered  with  railroads,  connecting  all 
j)arts  of  the  country,  even  the  Atlantic  and  Pacific.  Our 
manufacturing  establishments  are  found  in  every  State 
of  the  Union.  Our  machine  shops  have  been  supplied 
with  the  most  experienced  artisans.  Our  agricultural 
products  enable  us  to  export  $500,000,000  per  annum. 
Our  duties  on  imports  amount  to  $200,000,000  annually; 
our  internal  revenue  to  more  than  $100,000,000.  Our 
production  of  the  precious  metals  amounts  to  $70,000,- 
000  per  year.  In  view  of  these  facts,  how  preposterous 
to  compare  the  United  States  in  1879  with  the  Conti- 
nental Government  in  1776,  and  their  issues  of  paper 
money  with  those  of  the  United  States  now.  The  Con- 
tinental Government  failed  to  meet  its  obligations.  The 
Government  of  the  United  States  under  the  Constitution 
never  has.  In  1776  the  Continental  Government  had  es- 
tablished no  credit  at  home  or  abroad.  The  Government 
of  the  United  States  has  established  a  first-class  credit 
both  at  home  and  abroad.  A  currency  issued  by  the 
Government  of  the  United  States,  made  legal  tender  in 
all  parts  of  the  nation,  paid  out  for  all  debts  due  by  the 
Government,  and  received  into  tlie  treasury  for  all  debts 
due  the  nation,  can  never  be  at  discount. 

Mr.  Calhoun,  in  a  few  words,  expresses  the  difference 
between  Continental  money  and  United  States  Treasury 


88  LABQK   AND   FINANCE    REVOLUTION 

notes.  He  says  the  former  was  a  promise  to  yjay  with- 
out revenue,  but  the  latter  is  a  promise  to  receive  for 
rev^enue,  with  an  abundance  of  revenue  to  receive.  "We 
add  that  the  former  promise  was  not  made  by  a  nation 
to  be  fulfilled  by  a  nation.  The  latter  is  made  by  a 
nation  having  the  ability  to  perform, 

THE    FIRST    BANK    OF    THE    UNITED    STATES    UNDER  THE  CON- 
STITUTION.* 

This  bank  was  chartered  by  Congress  in  1791.  The 
capital  was  $10,000,000.  One-fifth  of  the  stock  was 
owned  by  the  United  States  and  $8,000,000  by  the  peo- 
ple. Six  of  the  eight  millions  were  Government  indebt- 
edness; and  $2,000,000 — money.  The  tenth  section  of 
the  charter  made  the  notes  of  the  l^ank  those  of  the  na- 
tion, by  providing  that  for  twenty  years  they  should  be 
received  for  all  dues  to  the  Government. 

This  institution  was  the  depository  of  all  Government 
money,  the  fiscal  agent  of  the  United  States,  the  commis- 
sioner of  all  Government  loans,  received  all  the  revenues 
of  the  nation,  paid  all  the  debts  of  the  Government,  and 
its  notes  were  made  by  the  Mth  section  of  the  act,  re- 
ceivable for  all  obligations  due  the  Government  for 
twenty  years,  or  during  the  life  of  the  charter.  The  bank 
always  paid  coin  when  demanded,  but  the  notes  were 
legal  tender  to  the  Governinent;  and,  therefore,  satis- 
factory to  the  people,  whether  the  bank  paid  coin  or  not. 
This  was  made  plain  by  the  law,  and  was  demonstrated 
ill  the  last  four  years  of  the  life  of  the  charter,  when  the 
most  bitter  controversy  was  carried  on  between  the  bank 
and  the  President  and  Cabinet. 

The  bank,  it  was  charged,  had  attempted  to  control. 


*Warwick  Martin. 


UNITED    STATES    BANKS.  89 

and  had  controlled  elections  in  the  State,  and  was  then 
laboring  to  control  those  of  the  nation.  Reports  charg- 
ing the  bank  with  corruption,  and  even  insolvency,  were 
circulated;  but  the  notes  of  the  institution  were  le<ral 
tender  for  all  debts  due  the  United  States,  and  on  that 
account  were  preferred  to  coin  by  the  people.  The  |C£'\\ 
charter  of  this  bank  expired,  by  limitation,  in  18^.  "^  \ 

We  solicit  especial  attention  to  the  fact  that  the  two 
banks  of  the  United  States,  wliich  existed  for  forty 
years,  were  and  are  the  only  banks  of  issue  in  the  United 
States,  or  in  any  part  of  the  commercial  world,  which 
never  suspendec^  specie  payments.  We  ask  every  think- 
ino;  man,  whv  was  this  so?  We  ask  each  one  to  e:ive  to 
himself  a  candid  answer  to  the  question.  It  is  impos- 
sible for  him  to  say  that  it  was  simply  because  said  banks 
were  better  fortified  by  coin  in  our  w^w  country,  than 
institutions  of  the  old  world  were.  On  the  contrary  no 
bank  of  issue,  not  even  the  Bank  of  England  oa-  these 
banks,  kept  more  coin  than  one  dollar  to  twenty  of  lia- 
bilities, including  circulation  and  deposits.  Coin  lying 
idle  in  banks  pays  no  interest,  and  banks  wish  something 
which  will  pay  interest.  The  reason  can  not  be  found 
in  anvthino;  but  in  this,  that  the  strong:  arm  of  the 
United  States  was  under  and  around  these  institutions; 
the  Government  owned  a  large  portion  of  the  stock, 
having  five  directors  in  the  institution,  and  had  con- 
tracted with  these  banks  and  with  the  people  that  the 
United  States  would  always  receive  their  notes  for  all 
obligations  to  the  nation.  In  the  United  States,  and 
■throughout  the  world,  the  notes,  drafts  and  obligations 
of  these  institutions  carried  with  them  the  name  and 
credit  of  the  new,  but  great  Republic.  Had  these  insti- 
tutions possessed  nothing  to   depend  upon   but  specie 


90  I-ABOK   AND    FINANCE    EEVOLUTION. 

payment,  they  would  have  shared  the  fate  of  all  banks 
of  issue.  Tliese  banks  were  the  United  States  Treasury 
and  the  Treasury  was  the  banks. 

Do  not  suppose  that  we  appro v^e  the  chartering  of  these 
institutions  by  Congress.  "\Ve  are  opposed  to  all  such 
charters  and  connections.  There  was  no  necessity  for 
creating  these  banks.  Congress  should  have  followed 
the  advice  of  Jefl'erson  instead  of  Hamilton.  The 
Treasury  should  have  issued  all  the  paper  money  of  the 
country,  and  made  it  a  full  legal  tender,  as  it  did  the 
copper,  silver  and  gold,  money.  Its  name,  power,  rev- 
enue and  credit  should  have  been  used  to  sustain  its  own 
money,  instead  of  being  thus  loaned  to  sustain  a  private 
corporation  and  individual  interests.  Its  paper  issue, 
made  full  legal  tender,  would  have  commanded  more 
respect  and  confidence  everywhere  than  the  notes  of 
these  banks  thus  guaranteed  by  the  nation.  They  never 
would  have  been  at  a  discount  for  coin;  they  would 
generally  have  been  at  a  premium  therefor.  Gold,  silver 
and  Treasury  notes  should  have  been  made  by  law  full 
legal  tender,  and  the  one  could  never  have  been  at  any 
considerable  premium  over  the  other.  Being  all  equal 
in  law,  the  one  most  convenient  would  have  the  best. 

The  law  placed  the  Government  money  in  this  bank, 
and  there  it  remained  subject  to  the  warrants  of  the 
treasurer.  The  bank  received  the  Government  revenues, 
and  paid  the  Government  debts.  In  reality,  the  bank 
was  the  Treasury;  and  so  far  as  finance  was  concerned, 
the  Government  was  the  bank.  The  name  and  credit  of 
the  United  States  accompanied  every  note  throughout 
the  world.  All  the  copper,  silver,  gold  and  paper  money 
of  the  nation  was  in  this  bank.  The  Government  kept 
no  money  at  the  Treasury.     The  people  who  held  and 


UNITED    STATES    BANKS.  91 

used  the  notes  did  not  inquire  wliether  the  bank  paid 
or  did  not  pay  coin.  It  was  a  matter  of  indifference  to 
them.  They  did  not  wish  coin.  The  notes  whicli  the 
Government  had  bound  itself  to  receive  for  all  dues  for 
twenty  years,  whether  the  bank  paid  coin  or  not,  were 
satisfactory  to  them.  They  did  not  look  to  or  regard 
the  bank.  They  confided  in  the  Government,  which  did 
not  deceive  them.  In  those  days  the  Government  kept 
contracts  made  with  people,  as  well  as  with  nations  and 
institutions.  There  was  little  or  no  demand  for  coin  in 
business.  It,  therefore,  went  into  the  bank,  and  into 
the  Treasury,  which  was  the  bank.  The  notes  went  out 
— the  coin  went  in.  When  drafts  of  the  treasurer  upon 
the  bank  were  presented,  for  which  coin  could  be  de- 
manded, the  notes  were  generally  paid  instead  of  coin, 
being  preferred  because  of  safety,  uniformality  and 
convenience.  The  coin  remained  in  the  bank — the  notes 
went  out  among  the  people. 

Men  of  business  will  not  use  coin  in  large  quantities 
if  they  can  obtain  instead  thereof  reliable  paper  money. 
This  money  always  has,  and  always  will  meet  this  demand. 
The  charter  of  this  bank  expired  in  1811. 

THE  SECOND  BANK  OF  THE  UNITED  STATES,-  CHARTERED  BY 

CONGRESS  IN  1816. 

This  bank  had  $35,000,000  capital,  so-called.  The 
Government  owned  $7,000,000  of  the  stock,  the  people 
$28,000,000.  Twenty-one  millions  of  this  $28,000,000 
consisted  of  Government  indebtedness;  $7,000,000  were 
coin  and  the  notes  of  the  State  banks,  supposed  to  be 
good,  though  suspended.  The  bank  was  also  given  25 
branches  in  the  States.  Tlie  charter  which  passed  Con- 
o-ress  in   1815,  provided  that  $15,000,000  of  the  capital 


92  LABOR   AND   FINANCE   REVOLUTION. 

of  the  bank  should  be  United  States  Treasury  notes,  is- 
sued during  the  war,  and  then  used  as  money  by  the 
Government  and  the  people.  Mr.  Madison  vetoed  this 
bill  because  of  this  provision.  He  insisted  that  to  give 
the  bank  said  Treasury  notes  would  be  to  furnish  it  with 
$15,000,000  of  money  instead  of  bonds,  and  to  deprive 
the  United  States  of  that  amount  of  money.  The  char- 
ter was  changed  the  next  winter,  and  bonds  were  taken 
by  the  bank  instead  of  Treasury  notes.  The  bank  wished 
the  Treasury  notes  instead  of  bonds,  because  they  were 
legal  tender  for  all  debts  due  the  United  States.  The 
bonds  were  not  legal  tender  for  anything.  Tliis  bank 
paid  $1,500,000  for  its  charter. 

Beino-  based  on  specie,  and  authorized  to  issue  thereon 
four  dollars  of  paper  to  one  of  coin  in  reserve,  the  volume 
of  its  outstanding  issue  was  constantly  fluctuating  be 
tween  thirtv  and  a  hundred  million  of  dollars,  keeping 
values  irreirular,  and  trade  and  business  in  a  constant 
tremor  of  uncertainty.  The  result  was  prostration  one 
day,  and  stimulation  the  next.  The  price  of  wheat  was 
one  year  as  low  as  20  cents  per  bushel  in  Kentucky,  and 
pork  fll  per  barrel  in  Pittsburgh. 

Euinous  sacrifices  of  property  at  sheriff  sales  followed 
a  year  of  apparent  prosperity.  To  stop  this  condition 
of  things,  and  to  strike  down  a  dangerous  political 
power,  Jackson,  in  1832,  organized  himself  into  a  green- 
back party,  and  declared  a  war  of  extermination  against 
this  enemy  of  the  people. 

Contemporaneous  history  informs  us  that  at  this  time 
"the  press  of  the  country  was  completely  subsidized; 
cono-ress,  as  well  as  state  legislatures,  bowed  in  abject 
submission  to  the  mandates  of  this  Money  Power;  and 
even  the  sunreme  court  of  the  United  States  did  not 


UNITED    STATES    BANKS.  93 

escape  its  contaminating  influence.  The  people  were  per- 
fectly helpless,  and  the  outlook  of  American  freedom 
was  dark,  indeed." 

Millions  of  dollars  belonging  to  depositors  were 
squandered  to  corrupt  the  people  and  defeat  Jackson's 
second  election. 

Statesmen,  congressmen,  politicians,  and  editors,  all 

succumbed  to  its  influence.     Hon.  W.  D.   Kelley,  in  a 

speech  in  1875,  said: 

"In  Philadelphia,  the  bank  would  order  the  business  men  to  hold 
public  meetings  in  its  behalf,  in  order  that  it  might  ascertain  who 
were  its  friends,  and  who  were  courageous  enough  to  stand  by  the 
President  in  his  efforts  to  redeem  the  people,  and  then  in  turn  would 
appoint  places  for  the  assembling  of  different  trades,  in  order  that 
the  employers  might  see  who  of  their  workmen  liad  opinions  which 
they  dared  maintain." 

The  two  political  parties  were  divided.  Like  the 
Republican  and  Democratic  parties  of  t<j-daj,  the  Re- 
'publican  and  Federal  parties  of  that  day  had  their  bank 
and  anti-bank  advocates.  Jackson's  war  was  not,  as 
many  suppose,  against  paper  money,  but  against  the 
right  and  policy  of  banks  to  issue  it.  He  contended 
that  the  Government  alone  had  the  right  to  issue  money. 
Before,  during  and  after  his  administration.  United 
States  treasury  notes  were  issued  and  in  circulation,  and 
although  their  issue  was  bitterly  opposed,  and  their  con- 
stitutionality denied  by  the  bank  party,  they  were 
strongly  advocated  by  the  anti-bank  party,  and  not  only 
the  constitutionality  of  their  issue,  but  their  legal  tender 
qualities  were  afiirmed  by  the  supreme  court  in  the  case 
of  Thorndike  against  the  United  States. 

Jackson's  new  anti-bank  party  took  the  name  of  Dem- 
ocrat, 

Berkey  says: 

"  The  bank  itself  was  a  colossal  Money  Power— its  arms  in  every 
state — by  means  of  branches — its  power   over  country  banks— its 


94  LABOR    AND    FINANCE    REVOLUTION. 

power  over  the  business  community— over  public  men  who  were  its 
debtors  and  retainers — its  organization  under  a  single  head,  issuing 
its  orders  in  secret  to  be  obeyed  in  all  places,  and  by  all  subordinates 
at  the  same  moment.  Such  was  the  formidable  array  on  the  side  of 
the  bank." 

The  Republican  party  that  had  elected  Jackson  was 
demoralized  and  disheartened  by  the  division  this  issue 
had  created. 

Still  old  Hickory  was  firm,  unj-ielding  and  uncom- 
promising. 

He  gathered  his  little  Democratic  band  around  him, 
and  when  the  second  campaign  opened,  he  sent  them  out 
to  educate  and  save  the  people,  with  nothing  to  rely  upon 
but  the  goodness  of  his  cause,  and  the  intelligence  and 
patriotism  of  the  people.  He  made  no  concessions,  and 
formed  no  coalitions  with  either  of  the  old  parties,  but 
marched  straight  on  to  victory  or  to  death.  Benton,  in 
his  "  Thirty  Years  in  Congress,"  says  that  the  bank 
spent  $3,000,000  in  bribing  and  subsidizing  members  of 
congress,  newspaper  editors,  politicians,  brokers,  jobbers 
and  men  of  influence,  to  defeat  Jackson  and  purchase  a 
re-charter. 

But  justice  and  Jackson  prevailed,  the  bank  power 
was  destroyed,  and  Democracy  was  triumphant. 

When  we  now  consider,  that  through  the  stupidity  of 
the  people,  and  the  bribery  of  those  in  authority,  another 
bank  power,  sixty-six  times  the  strength  of  the  old  one, 
has  grown  up  in  our  midst,  it  will  be  seen  that  the 
struggle  for  its  destruction  will  be  formidable,  but  if 
successful,  tlie  victory  will  be  great. 

STATE  BANKS. 

"  The  old  United  States  Bank  was  succeeded  bv  hun- 
dreds  of  State  banks  all  over  the  country.  They  were 
not  chartered  by  the  United  States,  but  by  the  States  of 


STATE    BANKS. 


95 


the  Union.  The  nation  did  not  agree  to  receive  their- 
notes  for  anything.  The  people  soon  learned  this  fact. 
They  professed  to  pay  coin  for  all  liabilities.  For  some 
time  they  met  all  coin  demands  npon  them,  but  the  peo- 
ple had  no  assurance  that  their  notes  would  be  received 
by  the  Government  for  all  dues,  if  they  failed  to  pay 
coin,  as  they  had,  with  the  United  States  bank  notes. 
It  was  not  long  until  bank  notes  in  circulation  were 
presented  at  the  counters  of  the  banks  for  coin.  Coin 
was  again  seen  among  the  people  and  in  the  business  of 
the  country.  The  notes  went  into  the  banks ;  the  coin  went 
among  the  people.  The  condition  of  things  was  reversed. 
Confidence  in  the  State  banks  weakened;  their  coin  be- 
came less  and  less,  until  they  failed  to  pay  coin." 

The  extent  to  which  these  banks  were  enabled  to  loan 
their  credit  by  means  of  the  specie  basis  will  appear 
from  an  examination  of  the  following  table,  copied  from 
the  Merchants'  Magazine  and  the  report  of  the  commis- 
sioners of  the  banks  of  Connecticut  for  a  period  of 
twelve  years,  from  1837  to  1849'  The  condition  of  the 
Connecticut  banks  may  be  taken  as  an  average  of  the 
banks  of  the  country: 


Year. 

Capital. 

Circulation. 

Total  Liabili- 
ties. 

Specie. 

Luaus  auddis- 
counta. 

1837 
1838 
1839 
1840 
1841 
1842 
1843 
1844 
1845 
1846 
1847 

$8,744,697  50 
8,754.467  50 
8,832.223  00 
8,878,245  CO 
8,873,927  50 
8,876,317  57 
8,580,393  50 
8,292.238  00 
8,359,748  00 
8,475,630  00 
8,675,742  00 

S3,998,325  30 
1,920,552  45 
3,987,815  45 
2.3:0,589  95 
2.784.721  45 
2.5.55,638  33 
5,379,917  02 
3,490,903  06 
4,102,444  00 
3,565.847  06 
4.437.631  06 

$15,715,964  50 
12,302.613  11 
14,942,779  31 
12  9.50,572  40 
13,866.373  45 
13,465.052  32 
12.914.124  66 
14,572.681  32 
15,243,235  79 
15,882,685  25 
15,784,782  04 

157,550,872  44 

$415,386  10 
535  447  86 
502,180  15 
939.032  52 
454,298  61 
471.238  08 
438.753  92 
4.54.430  30 
4.53.658  79 
481,367  09 
462  165  52 

$13,246,495  08 
9,760,2S6  80 
12,286,916  97 
10,418,630  87 
10,944,673  36 
10.683.412  37 
9,798,.392  27 
10,842,955  35 
12,477.196  06 
13,032,600  78 
12,781.857  43 

1849 

95,273,623  .57 
8,985,917  00 

38,549,475  13 
4,511.571  00 

5,168,657  95 

575,676  00 

$5,744,633  95 

126,292.888  33 
13,740,591  00 

iS104,259,546  57 

$140,033,489  33 

Average  Capital 

Average   Liabilities 

Average  Specie 

Average  Loans  and  Discounts. 


$8,688,295  55 

.13,129,230  37 

478,719  70 

.11,669,457  44 


96  LABOR    AND    FINANCE   REVOLUTION. 

By  the  foregoing  table  it  will  be  seen  that  the  average 
amount  of  specie  held  by  the  banks  in  the  State  of  Con- 
necticut, for  the  twelve  years,  was  $478,719,  while  the 
average  amount  of  their  loans  to  the  public,  during  that 
period,  was  $11,669,457 — more  than  twenty-four  and 
one-third  times  as  much  money  as  the  banks  had  specie. 
The  annual  interest  on  $11,669,457  was  $700,167.  If 
they  could  have  loaned  only  their  specie,  the  interest 
would  have  amounted  to  but  $28,723.  The  banks 
gained  from  the  public  annuallj'  $671,444  above  the  in- 
terest on  their  specie;  and,  in  the  twelve  years,  $8,057,- 
328.  They  collected  this  interest  in  advance,  and  made 
their  dividends  half  yearly  to  their  stockholders;  there- 
fore, it  is  proper  to  compound  this  interest  half  yearly, 
which  would  swell  their  gains  to  nearly  $12,000,000, 
that  is  to  say  $1,000,000  interest  annually.  These  were 
actual  gains,  as  much  realized  by  these  banks  as  if  they 
had  produced  and  sold  annually  $700,167  worth  of  agri- 
cultural products.  (The  statements  of  the  banks  of 
^ny  of  the  large  cities,  published  from  time  to  time  in 
the  newspapers,  will  disclose  a  similar  inflation  of  credit 
at  the  present  time.  The  fact  that  the  National  Banks 
do  not  redeem  their  notes  in  specie  makes  no  diflference. 
They  are  banks  of  issue  and  belong  to  the  specie  basis 
system  all  the  same.) 

The  banks  of  the  United  States  have  been  compelled 
to  suspend  specie  payments  at  various  times,  as  follows, 
to  wit:  In  1809, 1814,  1819,1825, 1834, 1837, 1839, 1841, 
1857,  1861,  and  in  1873  currency  payment.  These  sus- 
pensions have  invariably  occasioned  great  public  dis- 
tress, and  in  several  instances  have  involved  the  entire 
country  in  bankruptcy  and  ruin,  from  which  it  took 
years  to  recover.     In  March,  1809,  a  legislative  commit- 


STATE    BANKS.  97 

tee  of  the  State  of  Rhode  Island  made  an  examination 
into  the  affairs  of  the  Farmers'  Exchange  Bank  of  Glou- 
cester, and  it  was  found  that  the  bank  had  $580,000  of 
its  notes  in  circulation,  and  only  $86.16  in  its  vaults  for 
their  redemption.  Before  the  end  of  the  year  a  general 
suspension  of  the  banks  of  New  England  took  place,  and 
it  was  discovered  that  they  were  nearly  all  in  the  same 
condition — no  specie  and  nothing  to  show  but  the  worth- 
less notes  of  speculators. 

The  National  Banking  Act  of  1863  placed  a  tax  of 
ten  per  cent,  upon  all  State  bank  notes,  which  had  the 
effect  of   driving  these  issues  out   of   circulation  and 
winding  up  the  banks. 
7 


CHAPTER  VII. 

THE  BANK  OF  YEXICE. 

Notwithstanding  the  bsCnk  advocates  raise  their  voices 
in  holy  horror  against  the  idea  of  tlie  Government  engag- 
ing in  anything  like  a  banking  business,  it  is  nevertheless 
a  fact  that  theYenetian  Government  was  the  first  banker, 
and  established  the  lirst  bank  on  record.  It  was  a  bank,  too, 
that  not  only  did  all  the  banking  business  of  that  republic, 
but  of  a  large  proportion  of  the  civilized  world.  It  ex- 
isted for  over  six  hundred  vears,  during  which  time  it 
never  failed  or  suspended,  and  was,  according  to  histo- 
rians, '"  the  admiration  of  all  people,  the  chief  instru- 
ment of  finance,  and  the  chief  facilitv  for  the  commerce 
of  a  large  portion  of  the  continent/'  The  duration  of 
its  prosperous  existence,  the  unparalleled  facilities  it 
afforded  to  enterprise,  the  strength  and  power  it  gave  to 
the  Government,  the  great  favor  with  which  its  medium 
met,  and  the  premium  it  commanded  over  the  precious 
metals,  prove  it  to  have  been  based  upon  a  system  of 
more  than  ordinary  merit,  and  one  that  students  of 
financial  science  would  do  well  to  study  with  particular 
care. 

In  the  year  1171  a  war  between  the  Yenetian  republic 
and  the  Grecian  empire  gave  rise  to  the  Bank  of  Yenice 
as  our  late  civil  war  gave  rise  to  our  greenback  sj^stem, 
the  currency  or  exchange  medium  in  both  cases  being 
precisely  of  the  same  nature,  and  possessing  the  same 
basis  and  qualities.     After  having  exhausted  every  other 

98 


THE    BANK    OF    VENICE.  99 

financial  resource,  tlie  Venetian  Government  was  obliged 
to  have  recourse  to  what  is  falsely  called  a  forced  loan. 
Like  our  Government  during  the  late  war,  it  needed 
soldiers,  guns,  ammunition,  ships,  mules,  horses  and 
other  things  necessary  to  carry  on  a  successful  campaign, 
and  as  all  of  these  things  must  be  paid  for,  money  must 
be  had,  and  as  the  Government  had  none,  it  proposed  to 
borrow  it  of  its  own  citizens  in  such  sums  as  each  felt 
able  and  disposed  to  contribute.  For  these  suras  loaned 
to  the  Government,  the  individuals  loaning  them  were 
simply  credited  on  the  books  of  the  Government  treas- 
ury, and  these  credits  were  made  transferable  in  part,  or 
in  whole,  and  thus  became  a  medium  of  exchange,  and 
a  substitute  for  money  in  the  payment  of  debts.  The 
difference  between  the  Venetian  system,  and  the  green- 
back svstem  was,  the  Venetians  ffave  their  credits  for 
money,  and  with  the  money  purchased  supplies  and 
paid  for  services,  while  our  Government  gave  its  green- 
back credit  tokens  direct  for  what  it  needed,  without 
the  use  of  money.  The  policies  and  systems  were  iden- 
tical, except  the  greenback  system  is  more  simple,  as  it 
avoids  the  unnecessary  handling  of  coin. 

The  Venetian  greenbacks  were  simply  inscriptions  of 
credit.  A  man  who  had  credit  at  the  Venetian  treasury 
used  it  in  the  purchase  of  goods  or  the  payment  of 
debts,  just  as  we  use  greenbacks.  If  he  owed  a  man  a 
thousand  ducats,  more  or  less,  he  transferred  to  his  cred- 
itor that  amount  of  his  claims  against  the  Government. 
These  credits,  too,  were  irredeemable  by  the  Government. 
Col  well  says:  "Reimbursement  of  the  loan  ceased  to  be  re- 
garded as  either  necessary  or  desirable.  Every  creditor 
was  reimbursed  when  he  transferred  his  claim  on  the 
books  of  the  bank." 


100  LABOR   AND    FINANCE    KEVOLUTION. 

Thus  the  cost  of  their  war,  like  that  of  our  own, 
was  not  felt,  as  the  money  expended  was  immediately 
replaced  by  a  currency  of  Government  credit.  The  en- 
tire public  debt  was  'in  the  shape  of  a  medium  of  ex- 
change. 

The  Bank  of  Venice  was  simply  a  Government  bureau, 
having  charge  of  this  fund,  similar  to  our  bureau  of  the 
comptroller  of  the  currency.  It  kept  the  records  of  the 
owners  and  transfers  of  this  fund  for  the  benefit  of  the 
commercial  business  of  the  country.  The  credit  of  this 
bank,  which  was  the  most  popular  medium  of  exchange 
the  world  ever  had,  commanded  a  premium  over  coin  for 
two  reasons:  first,  security  from  loss  or  robbery,  and  its 
superior  convenience  of  handling,  and  second,  from  its 
perfect  security  against  the  prevailing  fraud  of  counter- 
feiting and  debasement  of  coin.  The  volume  of  these 
credits  was  not  restricted  to  the  original  loan,  but  was 
enlarged  as  the  demand  for  the  fund  increased.  We 
may  judge  of  the  high  estimation  in  which  this  ideal 
money  of  Venice  was  held  when  history  informs  us 
that  from  the  commencement,  coin  was  continually  being 
deposited  for  bank  credit,  knowing  that  it  would  never  be 
returned  to  the  depositor.  Colwell  says  "  If  individuals 
could  make  purchases  and  pay  debts  by  transfers 
in  bank,  the  public  treasury  could  well  afford  to  receive 
it  in  payment  of  its  dues,  as  it  would  only  be  equivalent 
to  taking  up  its  own  obligations.  Thus,  the  more  these 
credits  were  employed,  the  more  the  demand  Ibr  them 
increased,  the  more  rapidly  money  flowed  into  the  Treas- 
ury, and  the  more  readily  the  Government  could  afford 
to  receive  payment  of  its  revenues  in  the  funds  of  the 
bank." 

Thus,  for  near  seven  hundred  years,  existed  a  system 


THE    BANK    OF    VENICE.  l(jl 

of  finance,  based  upon  public  credit,  with  entire  confi-- 
dence  on  the  part  of  the  people,  and  admirable  prudence 
and  good  faith  on  the  part  of  tlie  Government,  converting 
the  entire  public  debt  into  a  curreyc}"  or  medium  of  ex- 
change, whicii  really  made  a  public  debt  a  public  bless- 
ing, and  produced  a  degree  of  prosperity  never  before 
or  since  reached  by  any  people.  The  only  dift'erence  be- 
tween the  Venetian  system  and  our  greenback  system 
is,  that  the  Venetian  money  was  ideal,  represented  by 
transferable  credits  on  the  bank  books,  and  ours  is  ideal, 
represented  by  greenback  credit  tokens  transferable  by 
passing  from  hand  to  hand.  The  principle  was  the  same, 
the  basis  the  same,  and  were  it  not  for  the  bank  sharks 
that  infest  the  times,  endeavoring  to  cry  down,  browbeat 
and  discredit  a  system  so  safe,  just  and  beneficial  to  the 
public  welfare,  in  order  that  they  themselves  may  have 
the  advantage  of  controlling  the  currency  of  the  country, 
resumption  and  specie  payments  would  never  be  dreamed 
of. 

Stephen  Colwell's  digest  of  fourteen  authorities  leads 
to  the  following  deductions,  as  will  be  seen  by  perusal 
of  his  able  work  : 

First — It  proves  that  there  was  a  national  bank  of 
Venice  founded  on  a  loan  of  two  millions  of  ducats 
spent  by  the  State  in  1171,  and  the  bank  existed  within 
the  memory  of  living  men,  a  period  of  626  years,  during 
which  time  it  was  graduallv  enlaro^ed  over  seven  hundred 
per  cent. 

Second — That  A.  D.  1-123  it  was  modified  by  law  to 
prevent  fluctuation. 

Third — That  the  four  per  cent,  interest  previously  paid 
was  abolished. 

Fourth — That  all  promise  of  reimbursement,  other 
than  transfer  of  credit  receipts,  was  abolished. 


102  LABOR    AND    FINANCE    KEVOLUTION. 

Fifth — That  the  nation  "took  the  coin  of  its  loans  one 
time  for  all  "in  the  nation's  bank,  giving  a  credit  receipt 
only. 

Sixth — That  no  coin  was  kept  as  a  specie  basis  of  credit, 
or  for  strengthening  the  nation.  They  were  immediately 
paid  out. 

Seventh — That  no  promise  to  pay  any  coin  was  made 
after  1423,  for  nearly  400  years  of  its  continuance. 

Eighth — That  this  "fiat"  or  legal  credit  was  that  in 
whicli  all  coins  were  expressed — the  fixed  standard  of 
payment — and  thus  the  principal  money  of  account; 
specie  being  for  retail  coin  or  export  commodity  and  le- 
gal tender  at  20  per  cent,  discount. 

Ninth — That  the  premium  fixed  by  law  of  20  per 
cent,  premium  over  the  Venetian  gold  ducat,  so  cele- 
brated for  its  fineness  in  export,  was  a  real  superiority 
of  legal  money  of  account  over  the  commodity  gold, 
and  over  ffold  currencv. 

Tenth^-That  it  was  not  dependent  on  any  promise  of 
convertibility  or  redemption  in  gold,  as  no  claim  for 
any  gold  was  acknowledged  in  the  National  Bank. 

Eleventh — Tliat  it  continued  for  nearly  four  hundred 
years  with  all  these  extraordinary  attributes,  producing  no 
financial  derangements  and  no  opposition;  but  on  the 
contrary  grew  until  it  exceeded  the  money  per  ca^jita 
of  any  nation  in  Europe,  ancient  and  modern,  and  was 
the  pride  of  Yenice,  the  envy  of  Europe. 

Twelfth — That  it  only  fell  when  Napoleon  conquered 
Yenice,  when  it  had  reached  an  issue  exceeding  $16,000,- 
000  of  Government  credit  or  money  for  200,000  people, 
excluding  the  dependencies  of  Yenice. 

Thirteenth — That  Napoleon  could  not,  and  did  not 
find  a  ducat  in  its  vaults,  as  there  had  never  been  a  pre- 


THE    BANK    OF    VENICE.  103 

tence  of  any.  That  he  would  liave  taken  gold  if  it 
was  there,  is  clear,  and  thus  have  been  strengthened  to 
further  enslave  Venice. 

Fourteenth — That  the  interest  alone  saved  on  each 
million  ducats  was  16,250,000,000,000  at  four  per  cent, 
for  400  years,  savings  bank  interest. 

These  facts,  if  true,  mean  something,  and  fair  argn- 
raent  is  better  than  calling  hard  names,  because  tlie. 
American  people  love  light  and  truth  and  fair  play. 


CHAPTER  VIII. 

METALLIC.  MONEY  * 

"  For  ages  gold  and  silver  have  been  esteemed  pre- 
cious metals,  containing  a  large  amount  of  intrinsic  value, 
although  their  inadequacy  to  supply  natural  wants  is 
manifest,  when  we  imagine  a  man,  with  a  bag  of  coins, 
on  a  desert  island,  and  without  the  power  to  exchange 
them  for  other  articles.  These  metals  have  intrinsic,  or 
actual  value,  and  this  value  consists  in  their  utility  for 
utensils  and  ornaments;  their  malleability,  ductility  and 
beauty  rendering  them,  for  some  purposes,  superior  to 
all  other  metals.  But  it  will  be  confessed,  that  we  could 
far  better  dispense  with  them  than  with  any  of  the  abund- 
ant metals,  which  are  in  more  general  and  constant  use, 
and  the  loss  of  which  would  seriously  impair  our  com- 
fort. 

"  In  early  ages,  gold  and  silver  were,  doubtless, 
selected  for  the  material  of  money  on  account  of  their 
scarcity,  and  the  amount  of  labor  necessary  to  procure 
them;  the  same  reason  that  led  the  American  Indians 
to  select  the  beaver  skin  for  a  standard  of  value,  by 
which  the  value  of  all  other  skins  and  commodities  was 
estimated.  It  has  been  ab-eady  explained,  that  gold  and 
silver,  when  used  as  money,  cease  to  have  any  other  use. 
These  metals  have,  however,  received  the  sanction  of  Gov- 
ernments as  the  material  of  money.     The  laws  require 


*Kellog. 


104 


METALLIC    MOXEV.  105 

coins  used  as  a  public  tender  shall  contain  a  certain 
weight  of  the  authorized  metal — witiiout  which  they 
are  illegal,  and  cannot  be  enforced  as  a  tender.  But 
the  only  reason  they  are  not  received  is,  that  they  are 
unsanctioned  by  law.  If  coins  of  base  metal  were  en- 
dowed by  law  with  the  properties  of  money — that  is, 
were  made  representatives  of  actual  value,  capable  of 
accumulating  by  interest  and  a  public  tender  for  debts, 
they  would  answer  every  jjurpose  of  money,  equally  well 
with  coins  of  pure  metal.  They  could  represent,  meas- 
ure, accumulate  and  exchange  property,  and  these  are 
the  sole  properties  and  uses  of  money. 

"  If  money  be  a  commodity,  why  do  Governments 
pretend  to  fix  a  value  upon  coins,  and  not  upon  any 
other  commodity,  although  it  be  made  of  gold  or  silver? 
If  a  definite  value  be  assigned  to  one  commodity  by 
leo^al  enactment,  a  definite  value  should  also  be  leo-allv 
assigned  to  every  other  commodity,  that  each  may  sus- 
tain a  just  relation  according  to  the  amount  of  labor 
necessary  to  manufacture  or  produce  it.  If  money  be  a 
commodity,  goods  sold  might  as  well  be  made  payable 
in  other  commodities,  sugar,  beef,  etc.,  as  in  money. 
Why  not  as  well  sell  money  on  time,  payable  in  goods, 
as  goods  on  time,  payable  in  money?  If  money  l)e  a 
commodity,  why  should  the  Government  force  the  pub- 
lic to  convert  every  other  commodity  into  this  one  to 
pay  debts?  If  the  sale  and  purchase  of  all  other  com- 
modities will  cause  debts  to  exist,  why  should  one  com- 
modity only  be  competent  to  pay  them?  And  why 
should  the  value  of  every  other  commodity  be  deter- 
mined by  this  one  commodity?  If  money  be  a  com- 
modity, why  does  the  Government  reserve  the  right  t<.> 
coin  it,  making  its  private  coinage  a  criminal  offense? 


106  LABOR    AND    FINANCE    REVOLUTION. 

Why  not  let  any  one  make  it,  and  dispose  of  it  in 
market  as  of  any  other  commodity?  If  money  be  mer- 
chandise, why  is  it,  that  it  can  be  at  all  times  exchanged 
for  property  and  products,  in  any  part  of  the  country,  and 
that  all  other  more  necessary  commodities  are  at  certain 
times  esteemed  almost  worthless,  compared  with  it?  It  is 
answered,  that  it  is  because  it  is  made  by  law  a  legal  ten- 
der in  payment  for  debts — that  it  has  this  superiority  over 
every  other  commodity.  But  the  very  answer  proves 
that  it  is  not  a  commodity;  for  a  legal  tender  is  a  crea- 
tion by  law  of  certain  properties  which  do  not  naturally 
belong  to  any  substance,  but  which  are  made  to  repre- 
sent all  substances,  and  to  control  their  exchange." 

NOT    A    STANDARD    OF    VALUE. 

It  is  utterly  impossible  to  make  gold  uniform  as  a 
standard  or  measure  of  value:  It  being  a  commodity  and 
bearing  a  commercial  value,  it  rises  and  falls  in  market 
like  any  other  production. 

The  act  known  as  the  Peel  Act,  of  1845,  made  gold 
receivable  at  the  Baidv  of  England  at  the  rate  of  three 
pounds,  nineteen  shilling,  and  nine  pence  per  ounce 
of  pure  metal.  Doubleday's  Financial  History  of  Eng- 
land, page  277,  has  the  following  statement  of  the 
fluctuations  of  gold  in  that  country  for  the  ten  years 
from  1810  to  1820,  compared  with  the  present  standard 
price  by  the  Peel  Act,  £3,  19s,  9d: 


1810 £4,    5s,  Od 

1811 .£4,  17s,  Id 

1812 - £5,    8s,  Od 

1813 £5,  10s,  Od 

1814 £5,    ls,Od 

1815 ...£4,  12s,  9d 


1816.. £3,  18s,    6d 

1817 £4,    Os,    Od 

1818 £4,    Is,    5d 

1819 £4,    3s,    Od 

1820 £3,  17s,  10>^d 


METALLIC    MONEY, 


107 


*I  insert  the  following  comparative  table  of  English  money  from 
Sir  Frederick  Eden.  The  unit,  or  present  value,  refers  of  course  to 
that  of  the  shilling  before  the  last  coinage,  which  reduced  it: 


Conquest, 

1066 

28  E.  I.. 

1300 

18  E.  III., 

1344 

20  E.  III., 

1346 

27  E.  III., 

1353 

13  H.  IV., 

1412 

4E.  IV., 

1464 

18  H.  VIII. 

1527 

34  H.  VIII. 

1543 

36  H.  VIII. 

1545 

37  H.  VIII. 

1546 

5  E.  VI., 

1551 

6  E.  VI., 

1552 

1  Mary, 

1553 

2  Eliz., 

1560 

43  Eliz.. 

1601 

Vauie  of 

pound 

bterlinsi 

present 

Proportion. 

money. 

3   IS 

IH 

2.906 

2  17 

5 

2.871 

2  12 

5H 

2.633 

2  11 

8 

2.583 

2     6 

6 

2.335 

1  18 

9 

1.937 

1  11 

0 

1.55 

1     7 

6% 

1.378 

1     3 

314 

1.163 

0  13 

UK 

0.698 

0    9 

BH 

0.466 

0    4 

1% 

0.233 

1     0 

684: 

1.038 

1     0 

5?^ 

1.024 

1     0 

8 

1.033 

1     0 

0 

1.000 

English  law  had  decided  and  assumed  to  compel  an 
ounce  of  gold  to  be  worth  £3,  19s,  9d,  according  to  the 
stamp  they  had  put  on  an  ounce  of  their  2^'^f&  gold 
metal. 

The  stamp  put  on  a  piece  of  metal  by  a  Government 
mint,  is  supposed  to  indicate  its  value,  or  to  express  its 
measuring  quality  or  purchasing  power  under  the  law. 
But  by  the  above  table  it  will  be  seen  that  in  ISIO  an 
ounce  of  pure  gold  by  the  same  stamp-counting  measure 
of  value  was  worth,  bought,  and  was  received  at  £4,  5s, 
in  1812,  £5,  8s,  and  on  up,  in  1813,  to  £5,  10s,  and  then 
down,  in  1820,  to  £3,  17s,  10|d;  and  this  was  not  as 
compared  with  any  paper  money,  but  with  itself,  in  value 
at  diiferent  periods  of  only  a  few  months  apart. 

The  wealth  concentrating  and  labor  impoverishing 
machine  of  the  British  Government  being  drawn  on,  in 
1810,  for  an  ounce  of  ]nire  gold,  would  count  out  £4,  5s 


*Note  by  Hallam. 


lOS 


LABOR   AND    FINANCE    REVOLUTION. 


woi'th,  as  footed  up  by  the  stamp  on  the  coins;  drawn 
on  for  an  ounce  of  pure  gold  in  1812,  it  would  count  out 
£5,  8s  worth,  drawn  on  in  1844  for  the  same,  it  would 
count  out  £3,  17s,  10|-d  worth — unless  it  had  suspended, 
as  it  has  made  a  rule  of  doing  periodically,  as  the  gold 
basis  has  always  done. 

How  did  it  happen  that  the  absolute  measures  fluctu- 
ated so  that  it  could  not  swallow  as  much  of  itself  at  one 
time  as  another?  And  this  is  the  absolute  money  stand- 
ard that  our  popular  preachers,  bondholders  and  shylocks 
worship.  Did  the  ounce  weigh  less,  and  then  more, 
changing  the  fixed  law  of  gravitation,  during  1810  and 
1812,  or  did  the  value  of  the  metal,  gold,  itself  by  law 
the  arbitrary  measure  of  value,  change? 

The  following  statistics,  compiled  by  W.  Kimball,  of 
New  Haven,  Conn.,  show  the  price  of  gold,  flour  and 
beef  from  1860  to  1874,  during  which  period  the  volume 
of  currency  swell  from  about  $400,000,000  to  near  $2,- 
000,000,000,  and  was  contracted  again  to  $779,000,000, 
and  gold  fluctuated  all  the  way  from  1.00  to  2.85. 


YEAR. 


18G0 
1801 
1862 
1863 
1864 
1865 
1866 
1867 
1868 
1869 
1870 
1871 
1873 
1873 
'874 


GOLD. 

FLOUR. 

BEEF. 

$1.00 

$5.35 

$10.75 

1.00 

5.50 

9.00 

1.00  to  1.37 

5.47 

12.00 

1.37  to  1.733^ 

5.87 

13.50 

1.73  to  3.85  >^ 

6.30 

13.35 

lAQU 

9.72 

30.00 

1.41 

7.60 

19.00 

1.37 

9.43 

13.50 

1.36 

870 

15.00 

1.24 

5.70 

14.00 

1.10 

4.93 

14,00 

1.08 

5.50 

13.50 

1.11 

6.00 

10.00 

1.12 

5  55 

11.00 

1.13 

5.95 

10.37 

METALLIC    MONEY.  109 

Accompanying  this  table  are  the  following  comments 
and  conclusions: 

"These  figures  demonstrate  that  the  value  of  gold,  as  money,  has 
not  been  governed  bj^  the  volume  of  currency,  and  that  it  is  not  the 
price  of  gold  that  governs  the  value  of  products  or  confidence  among 
business  men,  or  the  stability  of  their  commercial  relations. 

"Money  represents  ideal  values;  its  standard  is  regulated  by  ideal 
conceptions  of  the  people  using  it,  or  the  power  using  it  must  have 
the  force  to  cause  its  acceptance.  Uncivilized  tribes  use  shells, 
beads,  etc.  Heathen  nations  use  metallic  coins.  As  civilization  ad- 
vanced, coin  was  found  inadequate  to  meet  the  wants  of  commercial 
exchange,  and  to  meet  the  ideal  conception  of  that  age,  a  currency 
was  founded  on  a  coin  basis,  issuing  three  or  more  dollars  for  one 
of  coin." 

Professor  Jevons,  in  "Money,  Mechanism  and  Ex- 
change," shows  from  statistics  read  before  the  London 
Statistical  Society  in  1865,  that  the  valtte  of  gold  between 
1789  and  1809,  fell  in  the  ratio  of  100  to  5i,  or  by  46 
per  cent.  From  1806  to  1859  it  rose  again  in  the  extra- 
ordinary ratio  of  100  to  245,  or  by  145  per  cent,  "rend- 
ering Government  annuities  and  all  fixed  payments 
almost  two  and  a  half  times  as  valuable  as  thev  were  in 
1809,  prostrating  and  paralysing  industries  in  the  same 
ratio  that  debts  and  fixed  incomes  became  more  valuable, 
and  gold  increased  in  value  and  ptirchasing  power.'' 
After  1846  the  gold  discoveries  in  California  and  Aus- 
tralia increased  the  world's  annual  supply  from  $61,- 
000,000  that  year  to  $181,000,000  in  1851,  diminishing 
its  value  and  producing  power  36  per  cent.  Since  1846 
the  annual  product  of  gold  has  steadily  diminished  in 
quantity  from  $124,000,000  that  year  to  about  $80,000,- 
000  in  1877. 

The  New  York  Public,  a  prominent  financial  news- 
paper of  the  bullion  school,  furnishes  statistics  to  de- 
monstrate that  the  purchasing  power  of  gold  has 
increased   34  per  cent,  since  1873,  and  that  there  has 


110  LABOR    AND    FINANCE    REVOLUTION. 

been  a  corresponding  shrinkage  in  wages  of  labor  and 
the  general  prices  of  products. 

The  London  Economist  of  a  late  date  is  also  of 
the  opinion  that  gold  has  been  advancing  in  value 
since  1873.  To  establish  this  conclusion,  it  takes 
the  average  prices  of  22  articles  in  1815  to  1850 
at  100,  and  makes  a  comparison,  of  which  the  following 
are  the  principal  points:  From  1850  to  1S57  there 
was  a  rise  from  100  to  136;  to  1859,  a  fall  to 
115;  to  1864  a  rise  to  172;  to  1869,  a  fall  to  121:  a  tem- 
porary advance  in  1870  to  122;  and  in  the  succeeding 
years  fluctuations  as  below:  1871,  118;  1872,  129;  1873, 
134;  1874,  131;  1875,  136;  1876,123;  1877,  123;  1878, 
(December)  104. 

It  will  be  observed  that  the  fio^nres  of  the  Economist 
show  an  increase  in  the  value  of  gold  from  1873  to  1878 
of  30  per  cent,  while  the  calculation  of  the  Public  puts 
the  rise  in  gold  at  34  per  cent.  One  figures  upon  com- 
modities in  London,  and  the  other  in  New  York. 

The  effects  of  shrinking  and  swelling  values  of  money 
upon  the  industrial  and  commercial  prosperity  of  a 
country  are  most  disastrous. 

The  greatest  prosperity,  and  the  highest  moral,  intel- 
lectual and  material  development  of  a  nation  are  pro- 
moted by  the  use  of  money  unchanging  in  value.  The 
fallina:  value  of  monev,  induced  bv  an  increase  of  its 
quantity,  has  invariably  been  followed  by  an  increased 
business  activity  and  general  prosperity,  and  vice  versa. 

It  was  scarce  and  dear  money  that  cast  over  the  world 
the  pall  of  the  Dark  Ages,  and  not  till  the  discovery  of 
America  unlocked  the  vaults  of  Potosi,  in  1570,  increased 
the  volume  of  money,  diminishing  its  purchasing  power, 
and  advancing   the   prices  of  labor  and  products,  did 


METALLIC    MONEY.  Ill 

the   torch  of   civilization    lig'lit  up  tlie   world,    or   the 
shackles  of  feudalism  fall  from  the  limbs  of  society. 

What  is  meant  bv  dear  and  cheap  money?  What  is 
the  standard,  above  which  we  are  to  know  it  is  dear,  and 
below  which  it  is  cheap? 

We  have  our  zero,  above  or  below  which  the  mercury 
is  a  sure  indicator  of  temperature.  The  ocean  level  is 
the  standard  of  altitude,  and  the  equator  of  latitude. 
These  standards  are  unvarying  and  reliable. 

We  are  told  that  gold  is  a  standard  of  value.  It  can 
not  be  a  standard  of  its  own  value,  and  as  it  is  subject 
to  all  the  changes  and  fluctuations  of  other  products  it 
is  unreliable  as  a  standard  of  other  values 

Uniformity  of  general  'prices^  is  the  only  reliable 
standard  of  money  value. 

All  things  being  equal,  the  average  value  of  commod- 
ities will  remain  steady  and  uniform,  with  a  steady  and 
uniform  volume  of  money.  This  is  self-evident,  and  the 
only  question  is,  how  can  the  purchasing  power  of 
money  be  fixed  and  permanently  maintained? 

Only  by  substituting  for  the  precious  metals  a  domes- 
tic medium  of  exchange,  whose  volume,  and  purchasing 
as  well  as  debt-paying  power,  are  within  the  control  of 
the  Government  for  the  benefit  of  labor  and  enter- 
prise. 

What  matters  it  if  gold  is  one,  or  one  thousand  per 
cent,  premium?  As  a  domestic  money  we  have  no  use 
for  it,  and  our  business  prosperity  should  not  be  jeopard- 
ized by  being  linked  to  its  ever-varying  and  uncertain 
fortunes. 

Gold  has  nearly  doubled  in  value  and  purchasing 
power  since  1S64.  We  need  a  cheaper  money,  within 
the  reach  of  every  hand  of  toil. 


112  LABOR   AND   FINANCE   REVOLUTION. 

COINAGE  ACTS. 
{Compiled  and  digested,  by  W.  L.  Fawcett.) 

The  following  includes  all  the  clauses  of  all  the  laws 
of  the  United  States  (and  the  previous  Confederation  of 
States)  from  1781  to  1876,  as  they  relate  to  the  Weighty 
Fineness  and  Legal -Tender  Value  of  United  States  and 
foreign  coins.  This  summary  is  intended  as  historic  of 
tlie  policy  of  the  Government  in  regard  to  gold  and  silver 
coins  and  the  relative  values  of  the  two  metals: 
Articles  of  Confederation  between  the  States,  adopted  March  1, 1781. 

§  1.  The  United  Slates  in  Congress  assembled  shall  also  have  the 
sole  and  exclusive  right  and  power  of  regulating  the  alloy  and  value 
of  coin  struck  by  their  own  authority  or  by  that  of  the  respective 
States,  fixing  the  standard  of  weights  and  measures  throughout  the 
United  States. 

[By  act  of  the  Congress  of  the  Confederation  passed  August  8, 1786, 
and  by  the  ordinance  of  October  16,  1786,  a  silver  dollar,  containing 
370.64  grains  of  pure  silver,  was  established  as  the  "  unit  of  account," 
though  the  Confederation  had  not  established  any  mint,  and  no  such 
coins  as  were  specified  by  the  act  were  coined  anywhere.  The  dollar 
thus  established  was  intended  to  be  the  equivalent  of  4s.  6d.  sterling, 
but  fell  short  of  it  by  about  two  per  cent.J 

The  Constitution,  adopted  September  17,  1787. 

The  Congress  shall  have  power — 

g  2.    To  borrow  money  on  the  credit  of  the  United  States. 

§  3.  To  coin  money,  regulate  the  value  thereof,  and  of  foreign 
coin,  and  fix  the  standard  of  weights  and  measures. 

No  State  shall  coin  monej^  emit  bills  of  credit;  make  anything 
but  gold  and  silver  coin  a  tender  in  payment  of  debts;  pass  any  ex 
post  facto  law,  or  law  impairing  the  obligation  of  contracts. 

Act  April  2,  1792. 

That  the  money  of  account  of  the  United  States  shall  be  expressed 
in  dollars  or  units,  dimes  or  tenths,  cents  or  hundredths,  and  mills  or 
thousandths,  a  dime  being  the  tenth  part  of  a  dollar,  a  cent  the  hun- 
drelh  part  of  a  dollar,  a  mill  the  thousandth  part  of  a  dollar,  and  that 
all  accounts  in  the  public  offices  and  all  proceedings  in  the  courts  of 
the  United  States  shall  be  kept  and  had  in  conformity  to  this  regula- 
tion. 

§  4.  That  a  mint  for  the  purpose  of  a  national  coinage  be  and  the 
same  is  established ;  to  be  situate  and  carried  on  at  the  seat  of  govern- 
ment of  the  United  States  for  the  time  being. 

g  5.    There  shall  be,  from  time  to  time,  struck  and  coined  at  said 


METALLIC    MONEY.  113 

mint,  coins  of  gold,  silver  and  copper,  of  the  following  denomina- 
tions, values  and  descriptions,  viz.:  Eagles— each  to  be  of  the  value 
often  dollars  or  units,  and  to  contain  247  >^  grains  of  pure,  or  270 
grams  of  standard  gold.  Il'tlf  ck gles—e-dch  to  be  of  the  value  of  five 
dollars  or  units,  and  to  contain  123^:^  grains  of  pure,  or  135  grains  of 
standard  gold.  Quarter  eagles— each  to  be  of  the  value  of  two  dollars 
and  a  half  dollar,  and  to  contain  61%  grains  of  pure,  or  61%  grains 
of  standard  gold.  Dollars  or  units — each  to  be  of  the  value  of  a 
Spanish  milled  dollar,  as  the  same  is  now  current,  and  to  contain 
371 14'  grains  of  pure,  or  410  grains  of  standard  silver.  Ilalf  dollars 
— each  to  be  of  half  the  value  of  the  dollar  or  unit,  and  to  contain 
185%  grains  of  pure,  or  208  grains  of  standard  silver.  Quarter  dol- 
lars— each  to  be  of  one-fourth  the  value  of  the  dollar  or  unit,  and  to 
contain  92f|  grains  of  pure,  or  104  grains  of  standard  silver.  JJismes 
— each  to  be  one-tenth  of  the  value  of  a  dollar  or  unit,  and  to  contain 
373^  grains  of  pure,  or  41f  grains  of  standard  silver.  Half  dismes — 
each  to  be  of  the  value  of  one-twentieth  of  a  dollar,  and  to  contain 
18t5  grains  of  pure,  or  20f-  grains  of  standard  silver.  Cents— en  h  10 
be  of  the  value  of  one  hundredth  part  of  a  dollar,  and  to  contain  11 
pennyweights  of  copper.  Half  cents — each  to  be  of  the  value  of  half 
a  cent,  and  to  contain  5)^  pennyweights  of  copper. 

§  6.  The  proportional  value  of  gold  to  silver  in  all  coins  which 
shall,  by  law,  be  current  as  money  within  the  United  States  shall  be 
as  fifteen  to  one,  according  to  quantity  in  weight  of  pure  gold  and 
pure  silver;  that  is  to  say, every  fifteen  pounds  weight  of  pure  silver 
shall  be  of  equal  value  iu  all  payments  with  one  pound  weight  of 
pure  gold',  and  so  in  proportion  as  to  greater  or  less  quantities  of  the 
respective  metals. 

Act  February  9,  1793. 

§  7.  At  the  expiration  of  three  years  next  ensuing  from  the  time 
when  the  coinage  of  gold  and  silver,  agreeably  to  the  act  entitled 
"  An  act  establishing  a  mint  and  regulating  the  coins  of  the  United 
States,"  shall  commence  at  the  mint  of  the  United  States  (which  shall 
be  announced  by  proclamation  of  the  President  of  the  United  States), 
all  foreign  gold  coins  and  all  foreign  silver  coins,  except  Spauisli 
milled  dollars  and  parts  of  such  dollars,  shall  cease  to  be  legal  tender 
as  aforesaid.    (See  §  13.) 

§  8.  All  foreign  gold  and  silver  coins,  except  Spanish  milled  dol- 
lars and  parts  of  such  dollars,  which  shall  be  received  in  payment  for 
moneys  due  to  the  United  States  after  the  said  time  when  the  coining 
of  gold  and  silver  coins  shall  begin  at  the  mint  of  the  United  States, 
shall,  previously  to  their  being  issued  in  circulation  be  coined  anew, 
in  conformity  to  the  act  entitled  "An  act  establishing  a  mint  and 
regulating  the  coins  of  the  United  Stales."     (See  §  19.) 

Act  March  2, 1799. 

§  9.  All  foreign  coins  and  currencies  shall  be  estimated  at  the  fol- 
lowing rates,  viz. :  Each  pound  sterling  of  Great  Britain  at  four  dol- 
lars and  forty-four  cents  ($4.44) ;  each  Uv7-e  tournois  of  France  at  eigh- 
teen and  a  half  cents  (ISj;^);  each  florin  or  guilder  of  the  Union 
Netherlands  at  forty  cents  (40);    each  mark-banco  of  Hamburg  at 

8 


114  LABOR   AND    FINANCE    EEVOLUTION. 

thirty-three  and  one-third  cents  (33^) ;  each  rix,  dollar  of  Denmark 
at  one  hundred  (100)  cents;  each  real  of  plate  and  each  rial  of  vellon 
of  Spain, the  former  at  ten  cents  and  the  latter  at  five  cents  each; 
each  mib-ee  of  Portugal  at  one  dollar  and  twenty-four  cents;  each 
pound  sterling  of  Ireland  at  four  dollars  and  ten  cents;  each  tale 
of  China  at  one  dollar  and  forty-eight  cents;  each  pagoda  of  India  at 
one  dollar  and  ninety-four  cents;  each  rupee  of  Bengal  at  fifty-five 
and  one-half  cents;  and  all  other  denominations  of  money,  as  nearly 
as  may  be  to  the  said  rates  or  the  intrinsic  value  thereof,  compared 
with  money  of  the  United  States. 

g  10.  All  duties  and  fees  to  be  collected  shall  be  payable  in  money 
of  the  United  States,  or  in  foreign  gold  and  silver  coins  at  the  fol- 
lowing rates,  tliat  is  to  say:  the  gold  coins  of  Great  Britain  and  Port- 
ugal of  the  standard  prior  to  the  year  1793  at  the  rate  of  one  hundred 
cents  for  every  twenty-seven  grains  of  the  actual  weight  thereof; 
the  gold  coins  of  France,  Spain  and  the  dominions  of  Spain,  of  the 
standard  prior  to  the  year  1792,  at  the  rate  of  one  hundred  cents  for 
every  twenty-seven  grains  and  two-fifths  of  a  grain  of  the  actual 
weight  thereof;  Spanish  milled  dollars  at  the  rate  of  one  hundred 
cents  for  each  dollar,  the  actual  weight  whereof  shall  not  be  less 
than  seventeen  (17)  pennyweights  and  seven  (7)  grains — and  in 
proportion  for  the  parts  of  a  dollar;  crowns  of  France  at  the  rate  of 
one  hundred  and  ten  cents  for  each  crown ;  the  actual  weight  whereof 
shall  not  be  less  than  eighteen  (18)  pennyw3ights  and  seventeen  (17) 
grains — and  in  proportion  for  the  parts  of  a  crown,  Provided,  that  no 
foreign  crowns  shall  be  receivable  which  are  not  by  law  a  legal  tender 
for  the  payment  of  all  debts — except  in  consequence  of  a  proclama- 
tion by  the  President  of  the  United  States  authorizing  such  foreign 
coins  to  be  received  in  payment  of  duties  and  fees  as  aforesaid. 

■Act  March  3,  1801. 

§  11.  The  foreign  coins  and  currencies  hereinafter  mentioned 
shall  be  estimated  in  the  computation  of  duties  at  the  following 
rates:  each  sicca  rupee  of  Bengal  and  each  rupee  of  Bombay  at 
fifty  cents,  and  each  star  pagoda  of  Madras  at  one  hundred  and 
eighty-four  cents. 

Act  April  10,  1806. 

§  12.  Foreign  gold  and  silver  coins  shall  pass  current  as  money 
within  the  United  States,  and  be  a  legal  tender  for  the  payment  of  all 
debts  and  demands  at  the  several  and  respective  rates  following,  and 
not  otherwise,  viz. :  The  gold  coins  of  Great  Britain  and  Portugal 
of  their  present  standard  at  the  rate  of  one  hundred  cents.for  every 
twenty-seven  grains  of  the  standard  weight  thereof;  the  gold  coins 
of  France,  Spain  and  the  dominions  of  Spain,  of  tlieir  present 
standard,  at  the  rate  of  one  hundred  cents  for  every  twenty-seven 
grains  and  two-fifths  of  a  grain  of  the  actual  weight  thereof.  Spanish 
milled  dollars  at  the  rate  of  one  hundred  cents  for  each,  the  actual 
weight  whereof  shall  not  be  less  than  seventeen  (17)  pennyweights 
and  seven  (7)  grains,  and  in  proportion  for  the  parts  of  a  dollar. 
Crowns  of  France  at  the  rate  of  one  hundred  and  ten  cents  for  each 
crown,  the  actual  weight  whereof  shall  not  be  less  than  eighteen  (18) 


METALLIC    MOJS^EY  115 

pennyweights  and  seventeen  (17)  grains,  and  in  proportion  for  the 
parts  of  a  crown.  And  it  shall  be  the  duty  of  the  Secretary  of  the 
Treasury  to  cause  assays  of  the  foreign  gold  and  silver  coins  of  the 
description  made  current  by  this  act,  and  which  shall  issue  subse- 
quently to  the  passage  of  this  act,  and  shall  circulate  in  the  United 
States— at  the  mint  aforesaid,  at  least  once  in  every  year,  and  to  make 
report  of  the  result  thereof  to  Congress,  for  the  purpose  of  enabling 
Congress  to  make  such  coins  current— if  they  shall  deem  the  same 
to  be  proper — at  their  real  standard  value. 

§  13.  That  the  first  section  of  the  act  entitled  "An  act  regulating 
foreign  coins  and  for  other  purposes,"  passed  the  9tli  day^of  Feb- 
ruary, 1793,  be  and  the  same  is  hereby  repealed,  and  the  operation 
of  the  second  section  of  the  same  act  is  hereby  suspended  for  and 
during  the  space  of  three  years  from  the  passage  of  this  act.  (See 
§7-8.) 

Act  March  3,  1823. 

§  14.  The  following  gold  coins  shall  be  received  in  all  payments 
on  account  of  public  lands  at  the  several  and  respective  rates  follow- 
ing and  not  otherwise,  viz.:  the  gold  coins  of  Great  Britain  and 
Portugal  of  their  present  standard,  at  the  rate  of  one  hundred  cents 
for  every  twenty-seven  grains,  or  eighty-eight, cents  and  eight-ninths 
(88  8-9)  per  pennyweight;  the  gold  coins  of  France,  ot  their  present 
standard,  at  the  rate  of  one  hundred  cents  fo.r  every  twenty-seven 
and  one-half  grains  or  eighty-seven  and  a  quarter  (87  %)  cents  per 
pennyweight,  and  the  gold  coins  of  Spain,  of  their  present  standard, 
at  the  rate  of  one  hundred  cents  for  every  twenty-eight  and  a  half 
grains,  or  eighty-four  cents  per  pennyweight. 

§  15.  It  sha'll  be  the  duty  of  the  Secretary  of  the  Treasury  to 
cause  assays  of  the  foregoing  coins  to  be  made  at  the  mint  of  the 
United  States  at  least  once  in  every  year,  and  make  report  of  the 
result  thereof  to  Congress. 

Act  June  25,  1S34.  • 

^  16.  The  following  silver  coins  shall  be  of  the  legal  value,  and 
shall  pass  current  as  money  within  the  United  States,  by  tale  for  the 
payment  of  all  debts  and  demands  at  the  rate  of  one  hundred  cents 
to  the  dollar,  that  is  to  say,  the  dollars  of  Mexico,  Peru,  Chili  and 
Central  America,  of  not  less  weight  than  four  hundred  .and  fifteen 
grains  each,  and  those  re-stamped  in  Brazil  of  the  like  weight,  of 
not  less  fineness  than  ten  ounces  fifteen  peunyweighls  of  pure  silver 
in  the  troy  pound  of  twelve  ounces  of  standard  silver;  and  the  five- 
franc  pieces  of  France,  when  of  not  less  fineness  than  ten  (10)  ounces 
and  sixteen  (16)  pennyweights  in  twelve  ounces  troy  weight  of 
standard  silver,  and  weighing  not  less  than  three  hundred  and 
eighty-four  grains  each— at  the  rate  of  ninety-three  (93)  cents 
each. 

§  17.  The  following  gold  coins  shall  pass  current  as  money  in  the* 
United  States,  and  be  receivable  in  all  payments  by  weight  .'for  the 
payment  of  all  debts  and  demands  at  the  rates  following,  that  is  to 
say;  the  gold  coins  of  Great  Britain,  Portugal  and  Brazil,  of  not  less 
than  twenty-two  (22)  carats  fine,  at  the  rate  of  ninety-four  cents  and 


116  LABOR    AND    FINANCE    REVOLUTION. 

eight-tenths  of  a  cent  (94^^  per  pennyweight;  the  gold  coins  of 
France,  nine-tenths  fine,  at  tiie  rate  of  ninety-three  cents  and  oae- 
tentli  of  a  cent  (03^^  per  pennyweight,  and  the  gold  coins  of  Spain, 
Mexico  and  Columbia,  of  the  fineness  of  twenty  (20)  carats,  three 
grains  and  seven-sixteenths  (S^-'g)  of  a  grain,  at  the  rate  of  eighty-nine 
cents  and  nine-tenths  of  a  cent  (SOj^^)  per  pennyweight. 

Act  January  18,  1837. 

§  18.  The  standard  for  both  gold  and  silver  coins  of  the  United 
States  shall  hereafter  be  such  that  of  one  thousand  parts  by  weight 
nine  hundred  shall  be  of  pure  metal  and  one  hundred  of  alloy,  and 
the  alloy  of  silver  coins  shall  be  of  copper,  and  the  alloy  of  the  gold 
coins  shall  be  of  copper  and  silver,  provided  that  the  silver  do  not 
exceed  one-half  the  alloy. 

§  19.  Of  the  silver  coins,  the  dollar  shall  be  of  the  weight  of  4123^ 
grains;  the  half  dollar  of  the  weight  of  20634  grains;  the  quarter  dol- 
lar of  the  weight  of  103i^  grains ;  the  dime,  or  tenth  part  of  a  dollar^ 
of  the  weight  of  41 1^  grains,  and  the  half  dime,  or  twentieth  part  of  a 
dollar,  of  the  weight  of  20%  grains. 

§  20.  And  that  dollars,  half  dollars,  quarter  dollars,  dimes  and 
half  dimes  shall  be  legal  tenders  of  payment  according  to  their  nom- 
inal value  for  any  sums  whatever. 

i;  21.  Of  the  gold  coins,  the  weight  of  the  eagrZe  shall  be  2.58  grains;, 
that  of  the  half  eagle  129  grains,  and  of  the  quarter  eagle  64)^  grains. 

g  22.  And  that  for  all  sums  whatever  the  eagle  shall  be  a  legal 
tender  of  payment  for  ten  dollars,  the  half  eagle  for  five  dollars,  and 
the  quarter  eagle  for  two  and  a  half  dollars. 

Act  July  21,  1842. 

§  23.  In  all  payments  by  or  to  the  treasury,  whether  made  here  or 
in  foreign  countries  where  it  becomes  necessary  to  compute  the  value 
of  the  pound  sterliae,  it  shall  be  deemed  equal  to  four  dollars  and 
eighty-four  cents  ($4.84). 

Act  March  3, 1843. 

§  24.  The  following  gold  coins  shall  pass  current  as  money  in  the 
United  States  and  be  receivable  by  weight  for  the  payment  of  all  debts 
and  demands  at  the  rates  following,  that  is  to  say;  the  gold  coins  of 
Great  Britain,  of  not  less  than  nine  hundred  and  fifteen  and  a  half 
thousandths  (915)^-1,000)  in  fineness,  at  ninety-four  cents  and  six- 
tenths  (94/q)  of  a  cent  per  pennyweight,  and  the  gold  coins  of  France, 
of  not  less  than  eight  hundred  and  ninety-nine  thousandths  (y'oiyff)  ^'^ 
fineness,  at  ninety-two  cents  and  nine-tenths  of  a  cent  (92j%)  per  pen- 
nyweight. 

The  following  foreign  silver  coins  shall  pass  current  as  money 
within  the  United  States  and  he  receivable  by  tale  for  the  payment 
■  of  all  debts  and  demands  at  the  following  rates,  that  is  to  say;  the 
Spanish  pillar  dollars,  and  the  dollars  of  Mexico,  Peru  and  Bolivia, 
of  not  less  than  eight  hundred  and  ninety-seven  thousandths  (yoVo)  ^'^ 
fineness  and  four  hundred  and  fifteen  (415)  grains  in  weight,  at  one 
hundred  cents  each,  and  the  five-franc  pieces  of  France,  of  not  less 


ETALLIC    MONEY.  117 

thaa  nine  hundred  tliousandths  (j6°^)  ^^  fineuess  aud  three  hundred 
and  eighty-four  (i384)  grains  in  weight,  at  ninety-three  (93)  cents  each. 

Act  March  3,  1849. 

g  35.  There  shall  be  from  time  to  time  struck  and  coined  at  the 
mint  of  the  United  States  aud  tlie  branches  thereof— conformably  in 
all  respects  to  law,  aud  conformably  in  all  respects  to  the  standartl  for 
gold  coins  now  established  by  law — coins  of  gold  of  the  following 
denominations  and  value,  viz. :  Double  eagles,  each  to  be  of  the  value 
of  twenty  dollars  or  units,  aud  gold  dollars,  each  to  be  of  the  value  of 
one  dollar,  or  unit. 

g  26.  For  all  sums  whatever  the  double  eagle  shall  be  a  legal  ten- 
der for  twenty  dollars,  and  the  gold  dollar  shall  be  a  legal  tender  for 
one  dollar. 

§  27.  In  adjusting  the  weights  of  gold  coins  henceforward  the  fol- 
lowing deviations  from  the  standard  weight  shall  not  be  exceeded  in 
any  of  the  single  pieces,  namely:  in  the  double  eagles,  the  eagle  and 
the  half  eagle,  one-half  of  a  grain;  and  in  the  quarter  eagle  and  gold 
dollar,  one  quarter  of  a  grain;  and  that  in  weighing  a  large  number 
of  pieces  together,  when  delivered  from  the  chief  coiner  to  the  treas- 
urer, and  from  the  treasurer  to  the  depositors,  the  diviation  from  the 
standard  weight  shall  not  exceed  three  pennyweights  in  one  thousand 
double  eagles;  two  pennyweights  in  one  thousand  eagles;  one  and 
one-half  pennyweights  in  one  thousand  half  eagles;  one  pennyweight 
in  one  thousand  quarter  eagles,  and  one-half  of  a  pennyweight  in  one 
thousand  gold  dollars. 

Act  March  3, 1851. 

%  28.  It  shall  be  lawful  to  coin  at  the  mint  of  the  United  States 
and  its  branches  a  piece  of  the  denomination  and  legal  value  of  three 
cents,  orthree-huudredthsof  a  dollar,  to  Decomposed  of  three-fourths 
silver  aud  one-fourth  cooper,  and  to  weigh  twelve  (12)  grains  aud 
three-eighths  (%)  of  a  grain ;  that  it  shall  be  a  legal  tender  in  payment 
of  debts  for  all  sums  of  thirty  cents  and  under. 

Act  February  21,  1S53. 

%  29.  That  the  weight  of  the  Jialf  dollar,  or  piece  of  fifty  cents,  shall 
be' one  hundred  and  ninety-two  (192)  grains;  and  the  quarter  dollar, 
dime  and  half  dime  shall  be  respectively  one-half,  one-fifth  and  one- 
tenth  of  the  weight  of  the  half  dollar. 

§  30.  The  silver  corns  issued  in  conformity  with  the  above  section 
shall  be  legal  tenders  in  payment  of  debts  for  all  sums  not  exceeding 
five  dollars. 

§  31.  From  time  to  time  there  shall  be  struck  aud  coined  at  the 
mfnt  of  the  United  States  and  the  branches  thereof,  conformably  in 
all  respects  to  the  standard  of  gold  coius  now  established  by  law,  a 
coin  of  gold  of  the  value  of  three  dollars  or  units. 

%  82.  And  that  hereafter  the  three  cent  piece  now  authorized  by 
law  shall  be  made  of  the  weight  of  three-fiftieths  of  the  weight  of  the 
half  dollar,  as  provided  in  said  act,  and  of  the  same  standard  of  fine- 
ness. And  said  act,  entitled  "  An  act  amendatory  of  existing  laws 
relative  to  the  half  dollar,  quarter  dollar,  dime  and  half  dime,''  shall 


118  LABOR    AND    FINANCE    REVOLUTION. 

take  effect  and  be  in  full  force  from  and  after  the  first  day  of  April, 
1853,  anything  to  the  contrary  notwithstanding. 

Act  February  21,  1857. 

§  33.  The  standard  weight  of  the  cent  coined  at  the  mint  shall  be 
seventy-two  (72)  grains,  or  three-twentieths  of  an  ounce  troy,  with  no 
greater  deviation  than  four  grains  in  each  piece;  and  said  cent  shall 
be  composed  of  eighty-eight  (88)  per  centum  of  copper  and  twelve  (12) 
per  centum  of  nickel.    And  the  coinage  of  the  fialf  cent  shall  cease. 

Act  February  21,  1857. 

%  34.  The  pieces  commonly  known  as  the  quarter,  eighth  and  six- 
teenth of  the  Spanish  pillar  dollar  and  of  the  Mexican  dollar  shall  be 
receivable  at  the  Treasury  of  the  United  States  and  its  several  offices, 
and  the  several  postoffices  and  land  offices,  at  the  rates  of  valuation 
following,  viz. :  the  fourtli  of  a  dollar,  or  piece  of  two  reals  at  twenty 
cents;  the  eighth  of  a  dollar,  or  piece  of  one  real,  at  ten  cents;  and. 
the  sixteenth  of  a  dollar,  or  half  real,  at  five  cents. 

§  35.  All  fanner  acts  authorizing  the  currency  of  foreign  gold  or 
silver  coins,  and  declaring  the  same  a  legal  tender  in  payment  of 
debt's,  are  hereby  repealed;  but  it  shall  be  the  duty  of  the  director  of 
the  mint  to  cause  assays  to  be  made  fr(>m  time  to  time  of  such  foreign 
coins  as  may  be  known  to  commerce,  to  determine  their  average 
weight,  fineness  and  value,  and  to  embrace  in  his  annual  report  a 
statement  of  the  results  thereof. 

Act  April  22,  1864. 

§  36.  The  standard  weight  of  the  cent  coined  at  the  mint  of  the 
United  States  shall  be  forty-eight  grains,  or  one-tenth  of  one  ounce 
troy,  and  said  cent  shall  be  composed  of  ninety-five  per  centum  of 
copper  and  five  per  centum  of  tin  and  zinc  in  such  proportions  as 
shall  be  determined  by  the  director  of  the  mint;  and  there  shall  be 
from  time  to  time  struck  and  coined  at  the  mint  a  two-ceut  piece  of 
the  same  composition,  the  standard  weight  of  which  shall  be  ninety- 
six  grains,  or  one-fifth  of  an  ounce  troy,  with  no  greater  diviation 
than  four  trains  to  each  piece. 

§37.  The  said  coins  shall  be  a  legal  tender  in  any  payment,  the 
one  cent  coin  to  the  amount  often  cents,  and  the  two  cent  coin  to 
the  amount  of  twenty  cents;  and  it  shall  be  lawful  to  pay  out  said 
coins  in  exchange  for  the  lawful  currency  of  the  United  States  (ex- 
cept cents  or  half  cents  issued  under  former  acts  of  Congress)  in  suit- 
able sums,  by  the  treasurer  of  the  mint,  and  by  such  other  depositaries 
as  the  secretary  of  the  treasury  may  designate. 

Act  March  3,  1865. 

§  38.  There  shall  be  coined  at  the  mint  of  the  United  States  a 
three  cent  piece  composed  of  copper  and  nickel  in  such  proportion — 
not  exceeding  twenty-five  (25)  per  centum  of  nickel — as  shall  be  de- 
termined by  the  director  of  the  mint,  the  standard  weight  of  which 
shall  be  thirty  grains,  with  no  greater  deviation  than  four  grains  to 
each  piece. 


METALLIC    MONEY.  119 

§.  39.  The  said  coin  shall  be  a  legal  lender  in  any  payment  to  the 
amount  of  sixty  cents;  and  it  shall  be  lawful  to  pay  out  said  coins  in 
exchange  for  the  lawful  currency  of  the  United  States  (except  cents 
or  half  cents  or  two  cent  pieces  issued  under  former  acts  of  Congress) 
in  suitable  sums,  by  the  treasurer  of  the  mint,  and  by  such  other 
depositaries  as  the  secretary  of  the  treasury  may  designate.  Pro- 
vided, that  from  and  after  the  passage  of  this  act  no  issues  of  frac- 
tional notes  of  the  United  States  shall  be  of  less  denomination  than 
five  cents. 

§  40.  The  one  and  two  cent  coins  of  the  United  States  shall  not 
be  a  legal  tender  for  any  payment  exceeding  four  cents  in  amount 
(previous  laws  to  the  contrary  repealed). 

Act  May  16,  18G6. 

§  41.  There  shall  be  coined  at  the  mint  of  the  United  States  a  five 
cent  piece,  composed  of  copper  and  nickel  in  such  proportion — not 
exceeding  twenty-five  centum  of  nickel — as  shall  be  determined  by 
the  director  of  ttie  mint,  the  standard  weight  of  wiiich  shall  be  sev- 
enty-seven and  sixteen  hundredths  grains,  with  no  greater  deviation 
than  two  grains  to  each  piece. 

§  43.  Said  coins  shall  be  a  legal  tender  in  any  payment  to  the 
amount  of  one  dollar;  and  it  shall  be  lawful  to  pay  out  said  coins 
for  lawful  currency  of  the  United  States,  in  suitable  sums,  by  the 
treasurer  of  the  mint,  and  by  such  other  depositaries  as  the  secretary 
of  the  treasury  may  designate. 

§  43.  That  from  and  after  the  passage  of  this  act  no  issue  of 
fractional  notes  of  the  United  States  shall  be  of  less  denomination 
than  ten  cents. 

S^  44.  It  shall  be  lawful  for  the  treasurer  and  the  several  assistant 
treasurers  of  tlie  United  States  to  redeem  in  national  currency^  under 
such  rules  and  regulations  as  may  be  prescribed  by  the  secretary  of 
the  treasury,  the  coins  herein  authorized  to  be  issued  when  presented 
in  sums  of  not  less  than  one  liundred  dollars. 

Act  March  3,  1871. 

§  45.  That  the  secretary  of  the  treasury  is  required  to  redeem  in 
lawful  money  all  copper,  bronze,  copper-nickel  and  base-metal  coin- 
age of  every  kind  hitherto  authorized  by  law,  when  presented  in 
sums  of  not  less  than  twenty  dollars. 

Act  February  12,  1873. 

§  46.  That  the  gold  coins  of  the  United  States  shall  be  a  One 
Dollar  Piece,  which,  at  the  standard  weight  of  twenty-five  and 
eight-tenths  (25^^)  grains  shall  be  the  Unit  of  Value;  a  Quarter 
Eagle,  or  two  and  a  half  dollar  piece;  a  Three  Dollar  Piece;  a 
Half  Eagle,  or  five  dollar  piece;  an  Eagle,  or  ten  dollar  piece;  and 
a  Double  Eagle,  or  twenty  dollar  piece.  And  the  standard  weight 
of  tlie  Gold  Dollar  shall  be  twenty-five  and  eight-tenths  grains;  of 
the  Quarter  Eagle  sixty-four  and  one-half  grains;  of  the  Three  Dol- 
lar Piece  seventy-seven  and  four-tenths  grains;  of  the  Half  Eagle 
one  hundred  and  twenty-nine  grains;  of  tlie  Eagle  two  hundred  and 


120  LABOK    AND    FINANCE    REVOLUTION. 

fifty-eight  grains;  of  the  Double  Eagle  five  hundred  and  sixteen 
grains,  which  coins  shall  be  a  legal  tender  in  all  payments  at  their 
nominal  value  when  not  below  tiie  standard  weight  and  limit  of  tol- 
erance provided  in  this  act,  and  that  when  reduced  in  weight  below 
said  standard  and  tolerance  shall  be  a  legal  tender  in  proportion  to 
their  actual  weight. 

Any  gold  coins  of  the  United  States,  if  reduced  by  natural  abra- 
sion not  more  than  a  half  of  one  per  cent,  below  the  standard  weight 
after  twenty  years' circulation,  and  at  a  ratable  proportion  for  any 
less  period,  shall  be  received  at  their  nominal  value  at  the  United 
States  treasury. 

§  47.  The  silver  coins  of  the  United  States  shall  be  a  Trade  Dol- 
lar, a  Half  Dollar,  a  Quarter  Dollar,  a  Dime.  And  the  weight  of  the 
Trade  Dollar  shall  be  four  hundred  and  twenty  (420)  grains  troy;  the 
weight  of  the  Half  Dollar  shall  be  twelve  grams  and  one-half  of  a 
(jraiii;  the  Quarter  Dollar  and  the  Dime  shall  be  respectively  one- 
half  and  one-fifth  the  weight  of  said  half  dollar;  and  said  coins  shall 
be  a  legal  tender  at  their  nominal  value  for  any  amount  not  exceed- 
ing five  dollars  in  one  payment. 

§  48.  The  standard  for  both  gold  and  silver  coins  of  the  United 
States  shall  be  such  that  of  one  thousand  parts  by  weight  nine  hun- 
dred shall  be  of  pure  metal  and  one  hundred  of  alloy.  The  alloy  of 
the  silver  coins  shall  be  of  copper.  The  alloy  of  the  gold  coins  shall 
be  of  copper,  or  of  copper  and  silver,  but  the  silver  shall  in  no  case 
exceed  oue-tenth  of  the  whole  alloy. 

§  49.  The  minor  coins  of  the  United  States  shall  be  a  Five  Cent 
Piece,  a  Three  Cent  Piece  and  a  One  Cent  Piece.  The  alloy  for  the 
five  and  three  cent  pieces  shall  be  of  copper  and  nickel,  to  be  com- 
posed of  three-fourths  copper  and  one-fourth  nickel.  The  alloy  of 
the  one  cent  i)iece  shall  be  ninety-five  per  centum  of  copper  and  five 
per  centum  of  tin  and  zinc,  in  such  proportions  as  shall  be  determined 
by  the  director  of  the  mint.  The  weight  of  the  five  cent  piece  shall 
be  seventy-seven  and  sixteen  hundredths  grains  troy ;  of  the  three 
cent  pieces  thirty  grains,  and  of  the  one  cent  piece  forty-eight 
grains. 

§  50.  No  coins,  either  of  gold,  silver  or  minor  coinage,  shall  here- 
after be  issued  from  the  mint  other  than  those  of  the  denominations, 
standards  and  weights  set  forth  in  this  title. 

§  51.  Silver  coins,  other  than  the  trade  dollars,  shall  be  paid  out 
at  the  several  mints  and  at  the  assay  office  in  New  York  City  in  ex- 
change for  gold  coins  at  par,  in  sums  not  less  than  one  hundred  dol- 
lars. 

§  52.  Nothing  herein  contained  shall,  however,  prevent  the  pay- 
ment of  silver  coins  at  their  nominal  value  for  silver  parted  from 
yold,  as  provided  in  this  title,  or  for  change  less  than  one  dollar  in 
settlement  of  gold  deposits. 

g  53.  In  adjusting  the  weights  of  the  gold  coins  the  following 
deviations  shall  not  be  exceeded  in  any  single  piece:  In  the  double 
eagle  and  the  eagle,  one-half  of  a  grain;  inlhe  half  eagle,  the  three 
dollar  piece,  the  quarter  eagle  and  the  one  dollar  piece,  one-fourth 
of  a  grain,  and  in  weighing  a  number  of  pieces  together,  when  de- 
livered by  the  coiner  to  the  superintendent  and  by  the  superintendent 


METALLIC    MONEY.  121 

to  the  depositor,  the  deviation  from  the  standard  weight  shall  not 
exceed  one-huudredth  of  an  ounce  in  five  thousand  dollars  in  double 
eagles,  eagles,  half  eagles  or  quarter  eagles,  or  in  one  thousand  dol- 
lars in  three  dollar  pieces  or  one  dollar  pieces. 

§  54.  In  adjusting  the  weight  of  the  silver  coins  the  following  de- 
viations shall  not  be  exceeded  in  any  single  piece:  In  the  dollar,  the 
half  dollar,  the  quarter  dollar  and  in  the  dime,  one  and  one-half 
grains,  and  in  weighing  a  large  number  of  pieces  the  deviations  shall 
not  exceed  two-hundredths  of  an  ounce  in  one  thousand  dollars,  half 
dollars,  or  quarter  dollai's,  and  one-hundredth  of  an  ounce  in  one 
thousand  dimes. 

§  55.  In  adjusting  the  weight  of  the  minor  coins  provided  by  this 
title,  there  shall  be  no  greater  deviation  allowed  than  three  grains 
for  the  five  cent  piece,  and  two  grains  lor  the  three  and  one  cent 
pieces. 

g  56.  That  all  other  acts  and  parts  of  acts  pertaining  to  the  mints, 
assay  offices  and  coinage  of  the  United  States,  inconsistent  with  the 
provisions  of  this  act  are  hereby  repealed :  Provided,  Th&i  this  act 
shall  not  be  construed  to  affect  any  act  done,  right  accrued,  or  pen- 
alty incurred  under  former  acts,  but  every  such  right  is  hereby 
saved. 

Act  March  3,  1873. 

§  57.  The  value  of  the  sovereign,  or  pound  sterling,  shall  be 
deemed  equal  to  four  dollars  eighty-six  cents  and  six  and  one-half 
mills;  and  all  contracts  made  after  the  first  day  of  January,  1874, 
based  on  an  assumed  par  of  exchange  with  Great  Britain,  of  fifty- 
four  pence  to  the  dollar,  of  four  dollars  forty-four  cents  and  four-ninths 
cents  to  the  sovereign,  or  pound  sterling,  shall  be  null  and  void. 

Act  March  3,  1875. 

§  58.  That  there  shall  be  from  time  to  time  coined  at  the  mints  of 
the  United  States,  conformably  in  all  respects  to  the  coinage  act  of 
1873,  a  coin  of  silver  of  the  denomination  of  twenty  cents,  and  of 
the  weight  of  five  grams.  That  the  twenty  cent  piece  shall  be  a 
legal  tender  at  its  nomiual  value  for  any  amount  not  exceeding  five 
dollars  in  any  one  payment.  That  in  adjusting  the  weight  of  the 
twenty  cent  piece,  the  deviation  from  the  standard  weight  shall  not 
exceed  one  and  one-half  grains. 

Act  July  13,  1876. 

§  59.    That  the  trade  dollar  shall  not  hereafter  be  a  legal  tender. 


122 


LABOR   AND   FINANCE   REVOLUTION. 


COIN     IN    THE    UNITED    STATES. 

Estimate  of  the  amount  of  coin  in  the  country  from 
1854  to  1876.    (Official  report  of  Treasury  Department.) 


Coin  in  Banks. 

Total  in  the 
Country. 

1854  

$59,410,000 
55.945,000 
59,714.000 
59.372,000 
60,705,000 

$240,000,000 

1855  

1856 

1857 

1858 - 

1859 .• 

:i!..j,000,000 

1860. 

1861 

1862. 

1863 

1864 

1865 

1866 

1869 

1870 (October)  ..: 

6,000,000 
6,000,000 
5,000.000 
5,000.000 
5,500,000 
5,000,000 
6,000,000 

121,000,000 

1871  (October) 

116,000,000 

1872  (October) 

102,000,000 

1873  (October) 

109,000,000 

1874  (October)       

110,000,000 

1875  (October) 

100,01)0,000 

1976  (J une) 

102,000,000 

Tlie  amount  of  gold  and  silver  in  the  United  States 

treasury,  on  Xov  1,  1879,  was  as  follows: 

Gold  Coin $171,517,713 

Silver  Coin 50,078,620 

Total $221,596,333 

The  Director  of  the  mint  in  his  report  for  this  year, 

estimates  that  the  amount  of  coin  in  the  country  on  June 

30,  1879,  was  as  follows: 

Estimated  amount  June  30,  1878 $327,781898 

Nqt  gold  coinage  for  the  year 39,290,009 

Net  silver  coinage  for  the  year 26,518,642 

Importation  of  silver 5,180,015 

Total $393,770,564 

Deduct  net  exportation  of  gold 228,881 

Total  estimated  amount $398,541,663 


METALLIC    MONEY. 


123 


Of  which, 

Estimated  amount  of  gold $286,490  698 

Silver  coin $112,050,985 

Added  since  June  30  to  November  1,  of  silver  $9,- 
405.370;  of  gold  $19,259,799,  making  the  stock  of  coin 
in  the  country  at  the  latter  date,  $-127,206,852. 


THE    WORLD  S    ANNUAL    PRODUCTION. 
GOLD  AND  SILVER. 

The  following  is  the  Journal  des  Economists  table  of 
the  production  of  gold  and  silver  each  year  since  1S52: 


1852. 
1853. 
1854. 
1855. 
1856. 
1857. 
1858. 
1859. 
1860. 
1861. 
1862. 
1863. 
:864- 
1865. 
1866- 
1867. 
1868. 
1869. 
1870. 
1871. 
1872. 
1873. 
1874. 
1875. 


Gold, 

Silver, 

Millious. 

Millions. 

$1821.^ 

$401^ 

155 

40K 

127 

40>^ 

135 

401^ 

1471^ 

40K 

133 

403^ 

124^ 

40>^ 

1243^ 

401^ 

119 

401^^ 

114 

42^ 

m% 

45 

107 

49 

113 

511^ 

120 

52 

121 

50^ 

116 

54 

120 

50 

121 

47J^ 

116 

51)^ 

1161^ 

61 

loiK 

65 

1031^ 

70 

901^ 

71^ 

a?^ 

62 

Total  Oold 
and  Silver, 
Millions. 

$223 

m% 

175^ 

188 

173^ 

165 

165 

159^ 

1561.2' 

1521^ 

156 

1U% 

173 

170 

170 

1681.^ 

167^ 

1771^ 

163 
1591^ 


124 


LABOK   AND   FINANCE    REVOLUTION. 


Assumed  progress  of  the  annual  consumption  of  gold 
in  the  arts,  by  the  loss  and  abrasion  of  coins,  and  by  the 
loss,  wear  and  accumulation  of  jewelry: 

{W.  L.  Fawcett.) 


'  Tear. 

Millions. 

Year. 

Millions. 

1839 

25 

25.5 

26 

26.5 

27 

27.5 

28 

28.5 

29 

29.5 

30 

32 

34 

37 

40 

43 

47 

51 

1857 

55 

1840 

1858 

59 

1841 

1859 

63 

1843 

1860 

67 

71 

1843 

1861 

1844 

1845 

1846..., 

1863 

1863 

1864 

74 
77 
81 

1847 

1865 

85 

1848 

1866 

89 

1849 

1867 

92 

1850 

1868 

93 

1851 

1869 

97 

1852 

1870 

101 

1853 

1871 

105 

1854 

1873 

109 

1855 

1873.... 

110 

1856 

1874 

108 

Gold,  silver  and  base  metal  coin  and  gold  and  silver 
bullion  in  circulation  and  in  banks  in  all  Europe. 


Great  Britain 

France 

Germany 

Austria. 

Russia 

Italy. 

Spain 

Sweden 

Belgium 

Switzerland 

All  other  States  of  Europe. 


Gold. 


$443,500,000 
650,000,000 
380,000,000 


800,000,000 


11,872,500,000 


Silver  and  Base 
Metal. 


$  80,000,000 

350,000,000 

370,000,000 

200,000,000 

250,000,000 

145,000,000 

200,000,000 

70,000,000 

38.000,000 

5,000,000 

360,000,000 


$2,060,000,000 


i 


METALLIC    MONEY. 


125 


{From  Dr.  Lindermaii's  Official  Report.) 
Annual  Product  of  gold  and  silver  from  the  American  ?nines. 


Year. 

Gold. 

Silver. 

Total. 

1870    - 

$50,000,000 
43,500,000 
36,000,000 
36,000,000 
40,000,000 
40,000,000 
44,300,000 

$16,000,000 
23,000,000 
28,750.000 
35,750,000 
32,000,000 
32,000,000 
41,500,000 

$  66,000  000 

1871   

66,500  000 

1873 

64,750,000 

1873 

71,750  000 

1874 

72  000  000 

1875    

72,000,000 

85,700,000 

1876 

1877  (Wells,Fargo  &  Co.'s  est.) 

100  000  000 

COINAGE    FOR    THE   YEAB    1879. 
{From  the  Report  of  the  Secretary  of  the  Treasury.) 
The  value  of  the  gold  coinage  executed  during  the 

year  was $40,086,912  00 

Of  standard  silver  dollars _.  27,227,500  00 

Of  subsidiary  silver  coin 3S2  50 

Of  minor  coin. 97,798  00 


Total 68,312,592  50 

The  bullion  production  from  the  mines  of  the  United 
States  for  the  last  year  is  estimated  by  the  Director  to  be 
nearly  eighty  million  dollars,  the  proportions  of  gold 
and  silver  being  about  equal.  The  year's  total  produc- 
tion is  less  than  that  of  the  preceding  year,  caused  by 
a  diminution  in  the  yield  in  the  mines  of  Nevada,  which 
was  not  compensated  by  increased  production  in  other 
places. 

The  Director  estimates  the  coin  in  the  country  on  Oc- 
tober 31,  1879,  at  $305,750,497  of  gold,  and  $121,456,- 
355  of  silver.  The  bullion  in  the  mints  and  New  York 
assay  office  at  that  date  awaiting  coinage,  amounted  to 
$49,931,035  of  gold,  and  $4,553,182  of  silver,  making 
the  total  amount  of  coin  and  bullion  $481,691,069. 

The  total  amount  of  silver  dollars  coined  to  Novem- 
ber 1,  1879,  under  the  act  of  February  28,  1878,  was 


126 


LABOR   AND    FINANCE    EEVOLUTION. 


$45,206,200,  of  whicli  $13,002,842  was  in  circulation, 
and  the  remainder,  $32,203,358,  in  the  Treasury  at  that 
time. 

The  total  amount  of  specie  imported  from  January  1, 
1879,  to  November  15,  is  $75,512,392,  of  which  $65,- 
121,200  has  arrived  since  August  1.  The  production  of 
precious  metals  for  the  fiscal  year  1879  are  estimated  by 
the  Director  of  the  Mint  at  $79,711,990,  of  which  $38,- 
899,858  is  gold,  and  $10,812,132  is  silver. 

The  following  table  shows  the  amount  of  bullion  held 
by  the  Bank  of  England  in  each  year  from  1870  to 

1879:* 

(£=5  dollars.)  (£=5  dollars.) 

1870 S103,900,000        1875 $119,600,000 

1871 -   117,950,000       1876 148,500,000 

1872 112,900,000        1877 126,850,000 

1873 113,500,000        1878 .   119,200,000 

1874 111,450,000       1879 150,942,980 

The  amount  of  coin  held  by  the  Bank  of  France  on 
December  31  of  each  year  from  1870  to  1878,  and  also 
on  October  30,  1879,  is  shown  by  the  following  table :f 


Date. 

Gold  Coin  and 

bullion. 
(5fr.=$l.) 

Silver  coin  and 

bullion. 

(5  fr.=$l.) 

Total. 

Dec.  31,  1870 

«  85,740,000 
"^110,680,000 
131,740,000 
122,260,000 
204,220,000 
284,860,000 
306,080,000 
235,420,000 
196,720,000 
169,000,000 

1  13,700,000 

16,240,000 

25,520,000 

81,260,000 

62,640,000 

101.000,000 

127,720,000 

178,080,000 

211,620,000 

241,800,000 

$  99,440,000 
126,920,000 
158,260,000 
153,520.000 

Dec.  31,  1871 

Dec.  31.  1872 

Dec.  31,  1873 

Dec.  31,  1874  

266  860  000 

Dec.  31,  1875 

355  860,000 

Dec.  31,  1876 

433  800  000 

Dec.  31,  1877 

408  500,000 

Dec.  31,  1878 

408  340  000 

Oct.  30,1879 

410,800,000 

8 

*Page  412  of  the  Statistical  Societj^  June,  1879. 

fFrom  the  Bulletin  de  Statistique,  as  quoted  in  the  Bankers^  Maga- 
zine, New  York,  vol.  xiii,  page  740,  except  the  item  for  the  present 
year,  •which  was  obtained  from  the  Financial  Chronicle  of  New 
York,  of  November  15,  1879. 


METALLIC    MONEY.  127 

The  following  is  a  statement  of  different  nations,  not 
including  the  United  States,  with  their  estimated  popu- 
lations, classified  according  to  their  metallic  standards: 

SILVER-STANDARD  COUNTRIES. 

Population. 

Russia 76,000,000 

Austria.... 36,000,000 

Egypt 4,500,000 

Mexico 8,000,000 

Central  America 2,600,000 

Ecuador 1,300,000 

Peru 3,400,000 

China .«. 400,000,000 

British  India 237,144,456 

768,944,456 
As  Russia  and  Austria  both  have  legal  tender  paper 
money,  their  population  will  be  non-effective  in  relation 
to  the  matter  in  hand,  until  they  resume  specie  pay- 
ments, or  commence  to  hoard  specie  with  a  view  to  such 
payments.  With  that  deduction,  the  population  actually 
using  the  silver  standard  is  656,9'i-i,456. 

DOUBLE-STANDARD  COUNTRIES. 

Population. 

Greece 1,400,000 

Roumania 4,000,000 

Colombia 2,900,000 

Venezuela 1,600,000 

Chili 1,900,000 

Uruguay '. 400,000 

Paraguay 1,200,000 

Japan 33,000,000 

Holland 3,700,000 

France 36,200,000 

Belgium 5,100,000 

Switzerland 2,700,000 

Italy 26,800,000 

Spain 16,400,000 

137,300,000 
As  Italy  has  not  only  a  legal  tender  paper  money,  but 
substantially  no  metallic  money  in  circulation,  its  pop- 
ulation may  be  set  down  as  non-effective,  thus  reducing 


128 


LABOR    AND    FINANCE    REVOLUTION. 


the  population  of  this  group  to  110,500,000.  In  Hol- 
land, France,  Belgium,  Switzerland,  and  Spain,  contain- 
ing a  population  of  6J:,100,000,  the  coinage  of  silver  is 
either  limited  or  entirely  suspended. 

GOLD-STANDARD  COUNTRIES. 

Population. 

Great  Britain 32,000,000 

Canada,  Cape  of  Good  Hope,  and  Australian  Colonies...  7,000,000 

Germany 42,000,000 

Norway '  1,700,000 

Sweden 4,300,000 

Denmark v 1.800.000 

Portugal 4,000,000 

92,800,000 

The  average  value  of  the  standard  gold  dollar,  in  legal 

tender  paper  dollars,  during  the  month  of  July  in  each 

year,  from  1864  to  1878,  and  also  on  January  1, 1879: 


1864. 

1805. 

1866. 

1867. 

1868. 

1869. 

1870. 

1871. 

Cts. 
258.1 

Cts. 
142.   1 

Cts. 
151.6 

Cts. 
139.4 

Cts. 
142.7 

Cts. 
136.  1 

Cts. 
116.  8 

Cts. 
112.4 

1872. 

1873. 

1874. 

1875. 

1876. 

1877. 

1878. 

1879. 

Cts. 
114.3 

Cts. 
115.  7 

Cts. 
110.0 

Cts. 
114.  8 

Cts. 
112.  1 

Cts. 
105.  8 

Cts. 
100.6 

Cts. 
100.0 

WHY  AND    HOW    SILVER    WAS    DEMONETIZED. 

The  scheme  for  the  demonetizing  of  one  of  the  so- 
called  precious  metals  originated  with  the  money  or 
creditor  class,  not  for  the  public  good  or  general  welfare, 
but  was  prompted  solely  by  selfishness  on  the  part  of 
that  class. 

It  originated  soon  after  Lhe  rich  gold  discoveries  of 
California  and  Australia,  at  a  time  when  it  was  thought 


METALLIC   MONEY.  129 

tliat  the  increased  production  of  tlie  precious  metals 
would  seriously  aifect  the  value  of  money  by  the  antici- 
pated rise  in  general  prices. 

In  1857,  in  his  work  ("Fall  of  Gold")  Chevalier 
said: 

"The  quantity  of  gold  annually  thrown  on  the  general  market  ap- 
proaches, in  round  numbers,  a  milliard  of  francs  ($200,000,000). 
For  a  long  series  of  years  California  and  Australia  must  produce 
such  quantities  as  to  render  a  marked  decline  in  its  value  inevitable. 

"It  is  absolutely  certain  that  a  production  so  vast  should  be  accom- 
panied with  a  great  reduction  in  its  value. 

"In  no  direction  can  a  new  outlet  be  seen  sufficiently  large  to  absorb 
the  extraordinary  production  of  gold,  so  as  to  prevent  a  fall  in  its 
value. 

"Unless,  then,  we  possess  a  very  robust  faith  in  the  immobility  of 
human  affairs,  we  must  regard  the  fall  in  the  value  of  gold  as  an  event 
for  which  we  should  prepare  without  loss  of  time." 

Under  this  and  similar  appeals  from  different  parts  of 
Europe,  by  the  money  and  creditor  class,  who  saw,  in 
the  near  future,  their  coin  and  their  securities  depreci- 
ating in  value  relatively  as  the  poor  man's  labor,  and 
the  producer's  wealth  increased  through  the  increased 
volume  of  money,  Germany,  Austria  and  several  other 
countries  demonetized  gold. 

On  this  subject  the  Congressional  monetary  commis- 
sion says: 

"  The  movement  in  Europe  for  the  general  demonetization  of  gold 
would  have  become  general,  but  for  the  resistance  of  France.  It  was 
changed  in  1865  into  a  movement  for  the  demonetization  of  silver. 

"  But  this  change  from  demonetizing  gold  to  demonetizing  silver 
was  more  of  form  than  of  substance.  The  object  aimed  at  by  both 
was  a  disuse  of  one  of  the  money  metals,  to  protect  the  creditor  classes 
and  those  having  fixed  incomes  against  a  fall  in  the  value  of  money, 
and  arise  in  general  prices,  of  labor  and  property.'^ 

The  commission  adds: 

"  This  is  the  pith  and  marrow  of  the  monetary  discussions  of  the 
past  twenty  years.  In  all  the  European  discussions  after  1848,  and 
prior  to  the  German  demonetization  of  silver  and  its  consequences, 
the  point  made  was  not  that  eilher  metal  had  depreciated  relatively 
to  the  other,  but  that  by  reason  of  extraordinary  supplies  of  gold  from 
California  and  Australia  about  1805,  and  by  new  supplies  of  silver 

9 


130  LABOR    AND    FINANCE    REVOLUTION. 

from  Nevada,  both  metals  had  depreciated  relatively  to  labor  and 
commodities,  and  that  kings,  princes  and  olBce  holders,  having  fixed 
incomes,  and  the  creditor  class,  ]xa,\\x\g  fixed  annuities,  were  being  in- 
jured by  a  rise  in  the  price  of  labor  and  commodities." 

The  laboring  and  producing  classes  were  getting  the 
better  of  the  idle,  non-taxed  and  non-producing  classes. 
So  long  as  the  double  standard  existed,  a  new  supply  of 
either  metal  was  an  addition  to  and  onlv  aftected  the 
general  mass  of  money,  and  not  the  relative  value  of  the 
metals.  The  "  fall  in  "•old  "  which  Chevalier  lamented 
in  1857,  was  its  fall  in  relation  to  iwoferty.  In  order, 
therefore,  to  protect  the  "  income  classes  "  it  was  claimed 
to  be  necessary  to  demonetize  one  of  the  metals,  and  gold^ 
being  the  metal  which  then  promised  the  most  abundant 
yield,  was  selected  for  the  purpose. 

It  was  not  a  fall  in  gold  relatively  to  silver.,  which 
caused  Germany  to  demonetize  gold  in  1857,  neither 
was  it  a  fall  in  the  value  of  silver  in  1871-73  which  in- 
duced several  countries  in  Europe  and  the  United  States 
to  demonetize  silver. 

The  principal  causes  which  led  these  countries  to  adopt 
finally  the  gold  standard  and  reject  the  silver,  was,  first, 
the  persistence  with  which  England  clung  to  the  gold, 
made  a  European  union  upon  a  single  metal  other  than 
gold  impossible;  and  second,  the  discoveries  of  the 
Nevada  silver  mines. 

We  can  readily  see  liow  the  creditor  class  of  kingdoms 
and  empires,  and  that  class' of  born  and  law  perpetuated 
rulers  who  depend  upon  "  fixed  incomes,"  could  thus 
outrage  and  impose  upon  the  laboring  and  producing 
classes,  who  have  no  voice  in  the  legislatian  of  their 
respective  countries;  but  it  is  astonishing  that  a  free 
people,  exercising  absolute  sovereignty,  should  be  so 
blind  to  their  own  interest  as  to  allow  the  "creditor" 
and  "fixed  income"  class  thus  to  rob  and  destroy  them. 


METALLIC    MONEY.  131 

The  sole  object  of  tlie  resumption  of  gold  payments 
and  the  demonetization  of  silver  in  the  United  States  as 
in  Europe,  was  to  enhance  the  value  of  the  creditors' 
'principal  and  interest^  and  the  "  fixed  incomes  "  of  the 
salaried  officials,  by  low  and  degrading  prices  of  labor 
and  production.  The  demonetization  of  silver  in  the 
United  States  was  a  fraud  upon  the  people,  if  not  upon 
Congress  and  the  administi-ation. 

From  the  report  of  the  Silver  Commission  we  obtain 
the  following  facts,  also.  The  Act  of  February  12, 
18T3,  is  a  long  act  of  sixty-seven  sections,  regulating  all 
the  details  of  the  mint:  It  does  not  demonetize  the  old 
silver  dollar,  or  any  of  the  silver  coins  of  standard 
weight  issued  prior  to  1S74.  The  silver  dollar  is  not 
named  in  it,  and  it  would  escape  the  casual  observation 
that  the  dollar  was  in  &,x\y  way  affected  by  it. 

Precisely  what  the  act  did,  was  to  authorize  the  coin- 
age of  silver  half  dollars,  quartei-s,  and  dimes  below 
standard  weight,  and  of  a  new  silver  coin  for  Asiatic 
commerce,  above  standard  weight,  called  the  "'  trade  dol- 
lar," and  prohibited  these  coins  from  being  legal  tender 
for  more  than  five  dollars  in  any  one  payment. 

None  of  these  coins  were  legal  tender  for  more  than 
that  amount  under  the  act  of  February  25,  1853.  It 
contained  no  prohibition  of  the  coinage  of  the  old  silver 
dollar,  except  the  following,  which  would  not  likely  at- 
tract the  attention  of  anyone: 

"  No  coins  shall  hei-eaftor  be  issued  from  the  mint 
other  than  the  denominations,  standards  and  weights 
herein  set  forth." 

The  act  of  February  i2,  1873,  did  not  demonetize,  nor 
affect  in  any  manner,  the  legal  tender  functions  of  the 
full-weighted  silver  coins  that  had  been  minted  prior  to 


132  LABOR    AND    FINANCE    REVOLUTION. 

its  passage,  but  the  17th  section  deprived  §ilver  bul- 
lion of  its  right  of  being  coined  into  full  legal  tender 
money  on  either  Government  or  private  account. 

In  no  section  of  the  act  was  it  specifically  pointed  out 
or  referred  to,  that  the  efi'ect  of  the  act  was  to  change 
the  standard  of  values  of  gold  and  silver,  to  gold  alone. 

The  act  when  passed  was  not  read,  except  by  title,  and 
that  title,  instead  of  expressing  its  real  character,  read: 
^^  A71  act  revising  and  ajnending  the  laws  relating  to  the 
mint,  assay  offices  and  coinage  of  the  United  States^ 

It  is  notorious  that  this  transcendent  change  in  the 
money  systems  of  the  country,  affecting  the  most  vital 
interests,  was  carried  through  without  the  knowledge  or 
observation  of  the  people.  It  was  neither  demanded  by 
the  resolutions  of  public  meetings  or  political  conven- 
tions, nor  asked  for  in  petitions  from  the  people.  In  its 
relations  to  a  double  or  single  standard  it  was  hardly 
mentioned  in  the  House,  and  not  at  all  in  the  Senate. 

The  press  of  the  country  was  silent,  and  for  three 
years  it  rested  unobserved  by  the  public. 

The  actual  demonetization  of  silver,  coined  and  un- 
coined, was  not  completed  until  1874,  in  June,  by  the 
following  section  (3586)  of  the  Revised  Statutes: 

"  The  silver  coins  of  the  United  States  shall  be  a  legal 
tender  at  their  nominal  value  for  any  amount  not  ex- 
ceeding five  dollars  in  any  one  payment." 

Whereas  the  act  of  February  12,  1873,  did  not  de- 
monetize or  in  any  way  affect  the  silver  dollar  of  1853, 
or  authorize  its  discontinuance,  or  prevent  its  coinage, 
the  above  clause  was  interpolated  into  the  Statutes  hy 
the  revisers,  and  as  the  statutes  thus  revised  were  enacted 
in  bulk,  the  demonetization  of  the  silver  dollar  was 
eftected. 


CHAPTER  IX. 
NATIONAL  BAXKS. 

DIGEST    OF    THE    ORIGINAL    ACT. 

Tije  National  Banking  law  provides:  First:  That  any 
nuUiLer  of  persons  not  less  than  live  may  form  an  asso- 
ciation for  carrying  on  the  business  of  banking. 

Second:  Tliat  any  such  association  shall  have  corpor- 
ate power,  to  have  succession  for  the  period  of  twenty 
years,  to  make  contracts,  to  sue  and  be  sued,  etc. 

Third:  The  cajntal  of  such  associations  shall  not  be 
less  than  $50,000  in  ]ilaces  whose  population  does  not 
exceed  six  thousand;  not  less  than  $100,000  in  places 
whose  population  exceeds  six  thousand;  and  not  less 
than  $200,000  in  places  whose  population  exceeds  fifty 
thousand. 

Fourth:  The  acrorreccate  amount  of  circulation  is  fixed 
at  $354,000,000, to  be  apportioned  as  follows:  $150,000,- 
000  amono^  the  several  states  and  territories  according 
to  representative  poj^ulation;  $150,000,000  to  be  dis- 
tributed by  the  secretary  of  the  treasury  according  to 
his  discretion;  and  the  remaining  $54,000,000  to  such 
states  and  territories,  having  less  than  their  share,  as 
may  make  application  prior  to  July  12,  1871. 

Fifth:  No  association  is  authorized  to  commence  bus- 
iness until  it  shall  have  deposited  United  States  bonds 
to  the  amount  of  $30,000  with  the  treasurer  of  the 
United  States. 

133 


134  LABOR    AND    FINANCE    REVOLUTION. 

Sixth:  Every  such  association  is  entitled  to  receive 
froni  the  comptroller  of  the  currency  circulating  notes 
to  the  amount  of  ninety  per  cent,  of  the  capital  stock, 
if  it  does  not  exceed  $500,000;  eighty  per  cent,  if  it 
exceeds  $500,000,  but  does  not  exceed  $1,000,000;  sev- 
enty-five per  cent,  if  it  exceeds  $1,000,000,  but  does  not 
exceed  $3,000,000  ;  and  sixty  per  cent,  if  it  exceeds 
$3,000,000. 

THE   LEGAL    TENDER    OF    BANK    NOTES. 

Section  23  of  the  Act  provides  that  such  notes  (bank 
notes)  shall  circulate  the  same  as  money;  and  the  same 
shall  be  received  at  par  in  all  parts  of  the  United  States 
in  ]myment  of  taxes,  excises,  public  lands,  and  all  other 
dues  to  the  United  States,  except  for  duties  on  imports; 
and  also  for  all  salaries  and  other  debts  and  demands 
owing  by  the  United  States  to  individuals,  corporations, 
and  associations  within  the  United  States,  except  inter- 
est  on  the  public  debt,  and  in  redemption  of  the  national 
currency. 

Section  32  provides  that  ever}'  association  formed  or 
existing  under  the  provisions  of  this  act  shall  take  and 
receive  at  par,  for  any  debt  or  liability  to  said  associa- 
tion, any  and  all  notes  or  bills  issued  by  any  association 
existing  under  and  by  virtue  of  this  act. 

NATIONAL    BANK    CIRCULATION. 

{From  Report  of  Comptroller  of  the  Currency,  1879.) 

The  act  of  February  25,  1S63,  and  the  subsequent 
act  of  June  3,  1S61,  authorized  the  issue  of  $300,000,- 
000  of  national  bank  circulation,  which  was  increased 
by  the  act  of  July  12,  18T0,  to  $354,000,000.  The  act 
of  June  20,  1ST4,  authorized  any  national  l)ank  desiring 


NATIONAL    BANKS. 


135 


to  withdraw  its  circulating  notes,  in  whole  or  in  part,  to 
deposit  lawful  money  with  the  treasurer  of  the  United 
States  in  sums  of  not  less  than  $9,000,  and  to  withdraw 
a  proportionate  amount  of  bonds  held  as  security  for 
such  notes;  and  the  act  of  June  14,  1875,  repealed  all 
previous  provisions  restricting  the  aggregate  amount 
of  national  bank  circulation,  and  required  the  secretaiy 
of  the  treasury  to  retire  legal  tender  notes  to  an  amount 
equal  to  eiglity  per  cent,  of  the  national  banknotes  there- 
after issued,  until  the  amount  of  such  legal  tender  notes 
outstanding  should  be  |300,000,000  and  no  more.  That 
provision  of  the  act  which  required  a  reduction  of  United 
States  legal  tender  notes  was,  however,  repealed  by  the 
the  act  of  May  31,  1878.  Subsequent  to  the  passage  of 
the  act  of  June  20,  1874,  and  that  of  January  14,  1875, 
whicli  latter  act  authorized  the  retirement  and  re-issue 
of  national  bank  notes  at  the  pleasure  of  the  banks,  the 
circulation  steadily  decreased  in  volume  until  the  year 
1877,  the  total  decrease  in  this  interval  being  $30,869,- 
655.  During  the  year  ending  November  1,  1878,  there 
was  an  increase  of  $4,216,684,  and  during  the  year  end- 
ing November  1, 1879,  a  further  increase  of  $14,742,503, 
as  will  be  seen  from  the  following  table,  which  exhibits 
the  total  outstanding  circulation,  not  including  muti- 
lated notes  in  transit,  on  the  1st  day  of  November  of 
each  year  for  the  last  thirteen  years,  and  also  upon  the 
dates  of  the  acts  above  named: 


November  1,  1867.. 
November  1,  1868.. 
November  1,  1869 . . 
November  1,  1870.. 
November  1,  1871.. 
November  1,  1872.. 
November  1,  1873.. 
June  20,  1874 


1399,153,296 
300,002,234 
299,910,419 
302,607,942 
324.810,656 
341,512,772 
348,382,046 
349,894,182 


November  1,  1874.. 
January  14,  1875... 
November  1,  1875.. 
November  1,  1876  . 
November  1,  1877.. 

May  31.  1878 

November  1,  1878.. 
November  1,  1879 


$351,927,240 
351,801,450 
345,586,902 
321,150,718 
316,775.111 
321,232,099 
320,991,795 
335,134,504 


136  LABOR    AND    FINANCE    REVOLUTION. 

Since  the  passage  of  the  act  of  June  20,  1874,  $90,- 
229,886  of  legal  tender  notes  have  been  deposited  in  the 
treasury  by  the  national  banks,  for  the  purjjose  of  re- 
ducing their  circulation,  and  $81,136,362  of  bank  notes 
have  been  redeemed,  destroyed,  and  retired. 

From  the  date  of  the  passage  of  the  act  of  January  14, 
1875,  to  that  of  the  act  of  May  31,  1878,  which  ])rohib- 
ited  the  further  cancellation  of  legal  tender  notes,  $44,- 
148,730  of  additional  circulation  was  issued,  and  legal 
tender  notes  equal  to  eighty  per  cent,  thereof,  or  $35,- 
318,984,  was  retired,  leaving  the  amount  authorized 
$346,681,016,  which  is  the  amount  of  legal  tender  notes 
now  outstanding. 

The  amount  of  additional  circulation  issued  for  the 
year  ending  November  1,  1879,  was  $22,933,490,  of 
which  $7,494,170  was  issued  during  the  months  of  Sep- 
tember and  October.  The  amount  issued  to  banks  or- 
ganized during  the  year  was  $2,615,440;  the  amount 
retired  was  $8,190,987  ;  the  actual  increase  for  the 
year  beinir  $14,742,503.  During  the  year  endine:  No- 
v^ember  1,  1879,  lawful  money  to  the  amount  of  $10,- 
319,398  was  deposited  with  the  treasurer  to  retire  circu- 
lation, of  which  amount  $2,936,063  was  deposited  by 
banks  in  liquidation.  The  amount  previously  deposited 
under  the  act  of  June  20,  1874,  was  $65,164,523,  and  by 
banks  in  liquidation  $14,745,965,  to  which  is  to  be  added 
a  balance  of  $3,813,675  remaining  from  deposits  made 
bv  li(pudating  banks  prior  to  the  passage  of  that  act. 
Deducting  from  the  total,  $94,043,561,  the  amount  of 
circulating  notes  redeemed  and  destroyed  without  re- 
issue ($81,136,362),  there  remained  in  the  hands  of  the 
treasurer  on  November  1,  1879,  $12,907,199  of  lawful 
money  for  the  redemption  and  retirement  of  bank  cir- 
culation. 


NATIONAL    BANKS. 


137 


SECURITY    OF    CIRCULATING    NOTES, 

The  following  table  exhibits  the  classes  and  amounts 
of  United  States  bonds  held  by  the  Treasurer  on  the  1st 
day  of  November,  1879,  to  secure  the  redemption  of  the 
circulating  notes  of  the  national  bardvs: 


CURRENCY    OUTSTANDING. 

Treasury  notes  outstanding • $346,081,010 

National  banlc  notes  outstanding 337,181.418 

Gold  in  the  Treasury,  less  certificates  held  by  the  banks  157,900,193 

Silver  in  the  Treasury   50,078,020 

Coin  in  the  banlis  (October  2) 42,173,731 

Total $934,074,978 

The  following  table  gives  the  circulation  of  the  Bank 
of  France  and  its  branches,  with  the  number  of  pieces, 
and  the  denomination  in  francs  and  dollars,  on  January 
30,  1879: 


Number  of 
pit:ces. 

Denominations 

Value    of 
eachpiece 
in  dollars. 

Amount  in 
francs. 

.\mount  in  do'lars. 
(Fr.=20  cents.) 

5 

5,000  francs. 

1,000 

25  000 

5, 000 

1,382,379 

1,000  n-aucs. 

200 

l,382,37!t,(l00 

276,475,800 

753,599 

500  fiaucs. 

100 

376,799.500 

75,35S.900 

3,087 

200  francs. 

40 

617,400 

123.480 

5,046,051 

100  francs. 

20 

504,t;03,100 

100,920.620 

316,l(i6 

50  francs. 

10 

15,808,300 

3,161  660 

29,525 

25  francs. 

5 

■;38,12:. 

147.625 

42ti,537 

20  francs. 

4 

8,530,740 

1,706,148 

806,653 

5  francs. 
Forms  out  of 

1 

1,033,265 

206,653 

1,245 

date. 

4.36,400 

87.280 

8,l(i5,227 

2.-.;9(l.il70,fi30 

4.'S.I'.M.ltl6 

138 


LABOR    AND    FINANCE    KEVOLUTION. 


The  following  table  shows  the  capital,  surplus,  divi- 
dends, and  total,  earnings  of  all  the  national  banks,  for 
each  half-year  from  March  1,  1869,  to  Sept.  1, 1879: 


Period  of  six  months, 
ending 


Sept. 

Mar. 

Sept. 

Mar. 

Sept. 

Mar. 

Sept. 

Mar. 

Sept. 

Mar. 

Sept. 

Mar. 

Sept. 

Mar. 

Sept. 

Mar. 

Sept. 

Mar. 

Sept. 

Ma"-. 

Sept. 


18(19... 
ISTO... 
1870... 
1871... 
1871... 
1872... 
187-2... 
1873... 
1873  — 
1874... 
1874... 
1876... 
1875... 
1876... 
1876... 
1877... 
1?77... 
1878.-- 
1878.-. 
1879... 
1879... 


No.  of 

banks. 


1,481 
1  ..'i71 
1,601 
1  ,i>U.'5 
1,69.3 
1 ,7.)U 
1.8.V2 
1.912 
1.9.1.5 
1.967 
1,971 
•.',0U7 
2,047 
2.076 
2,081 
2,080 
2,072 
2,074 
2,047 
2.043 
2.045 


Capital. 


$401 ,650,802 
416,366,991 
42.5,317,104 
428,699,165 
445,999,264 
450,693,706 
465,676,023 
475,918,683 
488,1(10,951 
489,510,323 
489,9.38,284 
493,568.831 
497,8  •4,H.33 
504,209,491 
500,482,271 
496,651.580 
486,.324  860 
475.609.751 
470,231,896 
464,413,996 
455,132,056 


Surplus. 


$82,105,848 

86,118,210 

91,630.620 

94,672,401 

98.286,591 

99  431,243 

105,181,942 

114,2.57,288 

118.113.848 

123,469,859 

128.364,039 

131.560.637 

134,123,649 

134,467,595 

132,251,078 

130,872,165 

124,.349,254 

122,3;  3..561 

118,687,134 

116,744,135 

115,149,.35l 


Total 
Dividends. 


$21,767,831 
•Jl,  479,095 
21,080,343 
22,205,150 
22,125.279 
22.859,826 
2:3,827.289 
24.826,061 
24,823,029 
23,.529.998 
24,929,307 
24,750,816 
24.317,785 
24,811,581 
22,.563,829 
21,803,969 
22,117,116 
18,982,390 
17,959,223 
17,541,054 
17,401,867 


Total  Net 
Earnings. 


$29,221,184 
28,996,934 
26,808,885 
27,243,162 
27,315.311 
27,502,539 
30,572,891 
31,926,478 
33,122,000 
29,544,120 
30,036,811 
29,136,007 
28,800,217 
23,097,921 
20,540,231 
19,592.962 
15.274,028 
16,946,696 
13,658,893 
14,678,660 
16,873,200 


The  following  table  exhibits  by  denominations  the 
circulation  of  the  Imperial  Bank  of  Germany  on  Janu- 
ary 1,  1879,  in  thalers  and  marks,  which  have  been  con- 
verted into  our  currencv: 


Thai 

ers. 

Marks. 

% 

»■ 

^ 

x 

OD 

1  in 

Cm 

o 

.2 

'■4-J 

c3 

C    S3 

o 

O 
cj  ■ 

a 

-§1! 
5-^ 

C  o 

'i 
o 
a 
a 

a 

"ofl 
-  u 

Amount 
hirs.     (1 
75  cents 

a 

o 

a 

0) 

0.= 

>"p. 

Amount 
lars.   (M 
cents.) 

194 

500  thalers. 

375  00 

72.750 

218,444 

1,000  marks. 

250 

54,611,000 

2,517 

100  thaiers. 

75  00 

188,775 

2<.7,018 

500  marks. 

125 

25,877,250 

l,745i 

50  thalers. 

37.50 

65.456 

3,395,0591 

100  marks. 

25 

84,876,487 

9,194 

25  thalers. 

18.75 

172.388 

9,31U 

10  thalers. 

7.50 

69,836 

22,962 

569.205 

3.820,52U 

165.364,7.37 

NATIONAL    BANKS.  139 


BANK    TAXATION. 

Banks  of  all  kinds,  National  and  otherwise,  are  sub- 
ject to  the  following  tax: 

On  capital  beyond  the  average  amount  invested  in 
bonds,  one-half  of  one  per  cent. 

On  average  deposits,  one-half  of  one  per  cent. 

On  circulation,  one  per  cent,  per  annum. 

Total  annual  tax  paid  by  the  banks  on  circulation 
since  1864: 

1864 $53,096  97 

1865 733,247  59 

1866 2,106,785  30 

1867 2,868,636  78 

1868 2,946,343  07 

1869 2,957,416  73 

1870 - --  2,949,744  13 

1871 2,987,021  69 

1872       3.193,570  03 

1873 -  3,353,186  13 

1874         - - 3,404,483  11 

1875 3,283,405  89 

1876 - 3,091,795  76 

1877    --- 2,899037  09 

1878  2,948,047  08 

1879 3,009,647  16 

Aggregating 42,785,464  51 

According  to  the  last  report  of  the  Comptroller  of  the 
currency,  page  -IT,  the  amount  of  taxes  paid  by  tlie  na- 
tional banks  on  their  circulation,  for  1S79,  was  $3,009,- 
617.16.  The  Government  paid  the  banks  for  the  same 
period  $17,152,396.75  interest  on  tlie  bonds  deposited  as 
security  for  circulation  (page  23),  or  $1-4,142, 749. 59 
more  than  the  Government  received  in  taxes  on  circu- 
lation. The  national  banks  also  pay  taxes  on  their  cap- 
ital and  deposits  the  same  as  state,  savings  and  private 
banks.  The  only  tax  paid  by  them,  and  not  paid  by 
other  banks,  is  the  tax  on  circulation,  on  which  they  re- 


140 


LABOE   AND    FINANCE   REVOLUTION. 


ceive  from  the  Government  more  than  four  times  as 
much  as  they  return. 

On  deposits  the  national  banks  paid,  in  1879,  $3,309,- 
668,90.  Other  banks  paid  during  the  same  period  on 
deposits  $2,351,911.74.  On  capital  the  national  banks 
paid  $191,920,  while  other  banks  paid  $830,068— nearly 
twice  as  much  as  the  national  banks. 

The  following  table  exhibits,  bv  denominations,  the 
amount  of  national  bank  and  legal  tender  notes  out- 
standing on  November  1,  1879: 


1879. 

1878. 
Aggregate. 

1877. 

Denominations. 

.\mount    of 

national 
bunk  notes. 

Amount    of 

legal  tender 

notes. 

Aggregate. 

Aggregate. 

Ones 

Twos 

$3,567,200 

2,"92,49S 

97.911,820 

109,736,240 

72,652,160 

21  ,.324 ,900 

26,911,600 

641,.'i00 

283,00) 

§19,320,302 
18,938,365 
61,611,033 
71,711.318 
68,793,773 
24,853.045 
31,428,180 
22,446.500 
22,828,500 
3,250,000 
2,500,000 

$22,887,502 

21,030,863 

1.59,.522,853 

181,447,.5.'i8 

141.445,9-33 

46.177,945 

58.339,780 

23,088,000 

2.3,1 11, .500 

3.2.50,000 

2,500,000 

13..586 

§24,652  750 
22,915,0(16 
148,116,015 
168,908,071 
131,785.709 
47,658,995 
58,331,470 
31,1.59,000 
33,794,500 

$28,606,915 
26,883,428 

Fives 

Tens 

146,437,048 
161,459,711 

Twenties 

126.290,995 

Fifiies... 

One  Hundreds 

Five  Hundred'* 

One  Tliousands 

Five  Thousands 

.52,363,815 
58,976.670 
35,956,000 
34,380,500 

Ten  Thousands 

Add  for  fractions  of 
notes  not  present- 
ed or  destroyed 

13.586 

11.561 

*1, 010,800 

Totals 

335,134,5(4 

347,681,016 
1,000,000 

682,815,520 
1,000,000 

667,333,137 
1  000.000 

672,365,882 

Deduct  for  legal  ten- 
der notes  destroyed 
in  Chicago  fire 

Totals. 

335,134, f04 

346,681,016 

681.815.520 

666,333,137 

672,365,882 

♦Includes  $1,000,COO  destroyed  inChicajo  fire;  denominations  unknown. 


ORIGIN    OF    BANK    NOTES. 

A  device  for  regulating  the  value  of  coin.  J'or  cen- 
turies they  were  not  redeemable,  but  bore  a  premium. 

Jevons  informs  us  that  the  bank  note  system  had  its 
origin  in  Italy,  from  five  to  seven  centuries  ago.     In 


NATIONAL    BANKS.  141 

those  days  the  circulating  medium  consisted  of  a  mix- 
ture of  coins  of  various  and  unknown  quality  and  value, 
and  much  of  it  clipped  and  debased. 

In  receiving  money  the  merchant  had  to  weigh  and 
estimate  the  fineness  of  each  coin,  or  be  to  the  trouble 
and  expense  of  having  it  assayed,  and  much  trouble,  loss 
of  time  and  risk  of  fraud  thus  arose. 

It  became,  therefore,  the  custom  in  the  mercantile  re- 
publics of  Italy  to  deposit  such  money  in  bank,  where 
its  value  was  accurately  estimated,  once,  for  all,  no  more 
to  go  into  circulation,  and  the  amount  placed  to  the 
credit  of  the  depositor. 

The  banks  of  Hamburg  and  Amsterdam  were  estab- 
lished on  a  similar  system.  The  coins  placed  to  the 
credit  of  individuals  in  those  l)anks  were  called  hank 
money.  It  was  "  hanhed^''  set,  or  placed  there  to  remain, 
and  instead  of  being  used  in  ordinary  transactions  of 
commerce,  fajyer  representatives,  or  transferable  certifi- 
cates of  the  value  and  amount  of  the  deposit  were  used 
instead. 

In  some  instances,  as  the  Bank  of  Venice,  payments 
were  made  by  the  parties  attending  the  bank  at  a  par- 
ticular hour,  and  ordering  transfers  of  credit  to  be  made 
in  the  bank  books. 

These  transfers  of  credit  constituted  the  currency,  or 
circulating  medium  of  the  republic. 

It  was  always  of  full  value,  often  commanding  a  pre- 
mium, while  all  trouble  and  errors  of  counting  and  valu- 
\\\v  it  were  avoided. 

This  system  avoided  all  losses  of  money  by  robbery 
or  shipwreck  and  piracy.  It  avoided  the  nefarious  prac- 
tice of  abstracting  from  the  value  of  the  coins  by  plug- 
ging, sweating  and  counterfeiting,  and  above  all  it  saved 


142  LABOR    AND    FINANCE    EEVOLUTION. 

the  loss  of  deteriorature  by  wear  of  circulation,  which  is 
estimated  at  three  per  cent,  each  year. 

Paper  transfers  were  attended  bj  no  such  risk. 

Being  legal  tender,  and  known  to  represent  the  actual 
value  of  their  face,  they  possessed  all  the  commercial 
value  of  the  thing  represented,  besides  the  additional 
value  of  their  convenience  and  safet^'. 

For  five  hundred  years  this  was  the  currency  of  Italy, 
under  which  her  wealth  and  commerce  surpassed  that  of 
any  other  nation  on  the  globe. 

If  one  of  earth's  productions  was  ample  security  on 
which  to  base  the  currency  of  Italy,  which  carried  her 
through  centuries  of  uninterrupted  prosperity,  how 
much  more  ample  is  the  deposit  of  the  domain  itself, 
with  all  its  productions,  for  the  basis  of  our  medium  of 
exchange! 

,No  banker  or  buUionist  complains  of  bank  currency, 
which  is  nothing  more  or  less  than  transferable  tokens 
'of  credit. 

The  banker  deposits  with  the  comptroller  of  the  cur- 
rency his  bonds,  and  he  becomes  a  creditor  of  the  Gov- 
ernment, nothing  more  or  less,  to  the  amount  so  depos- 
ited. 

For  convenience  sake,  and  as  evidence  that  the  Gov- 
ernment is  indebted  to  him,  he  asks  that  the  affffreirate 
of  his  credit  may  be  cut  up  into  small  denominations, 
to  be  transferred  to  third  parties,  and  pass  from  hand  to 
hand  in  the  ordinary  transactions  of  business. 

Every  person  to  whom  one  of  these  bits  of  paper  is 
paid  becomes  a  creditor  to  the  Government  to  the 
amount  represented  by  it. 

The  injustice  of  this  system  is,  that  the  banker,  after 
he  has  transferred  nine-tenths  of  his  claim  aijainst  the 


NATIONAL    BANKS.  143 

Government  to  third  parties,  he  not  only  continues  to 
draw  interest  on  the  M'hole  amount,  while  those  to  whom 
he  has  transferred  his  claim,  get  no  interest,  but  are  com- 
pelled to  pay  the  banker  interest  on  that  portion  of  the 
public  debt  he  has  parted  with. 

THE    CONSTITUTIONALITY    OF    BANK    MONEY. 

No  one  will  deny  that  bank  notes  are  intended,  and  in 
fact  are,  a  substitute  for  money.  Their  necessity  grows 
out  of  a  deficiency  of  money.  Congress  has  authority, 
which  it  derives  from  the  constitution,  to  coin  money 
and  regulate  the  value  thereof. 

If  authority  exists  anywhere  to  coin  a  substitute,  it 
must  rest  with  that  branch  of  the  Government  author- 
ized to  coin  the  real.  The  very  fact  that  congress  dele- 
gates the  power  to  banks,  and  the  fact  that  banks  claim 
to  derive  their  power  from  congress,  to  issue  paper  sub- 
stitutes for  coin,  are  admissions  that  congress  possessed 
the  power,  else  how  could  it  confer  what  it  did  not  pos- 
sess? 

All  the  powers  of  congress  are  derived  from  the  con- 
stitution, and  if  that  instrument  confers  the  power  to 
coin  money  substitutes,  it  is  implied  in  that  clause  con- 
ferring power  to  coin  money.  Has  congress  a  right  to 
delegate  its  control  over  the  coinage  of  gold  and  silver 
to  private  corporations?  If  not.  whence  does  it  derive 
its  authority  to  delegate  to  banking  associations  its  con- 
trol over  coin  substitutes?  Congress  could  not  grant 
the  substitute  prerogative  to  the  banks  unless  it  first 
possessed  it.  If  it  ever  possessed  it,  it  held  it  as  a  trust, 
to  exercise  for  the  benefit  of  the  people  as  their  agent 
If  it  never  possessed  the  substitute  prerogativ^e,  it  could 
not  confer  it  upon  banks,  hence,  they  exercise  a  usurped 


14-i  LAIiOK    AND    FINANCE    REVOLUTION. 

power.  If  congress  does  possess  the  prerogative,  it  has 
no  more  right  to  delegate  it  than  it  has  to  delegate  the 
power  to  coin  inonej. 

Is  the  right  to  issue,  regulate  and  control  the  currency 
of  the  country  a  natural  individual  right,  or  a  function 
of  sovereignty? 

If  a  natural  individual  right,  is  not  the  monopoly  of 
it  by  the  national  banks  in  violation  of  the  spirit  of  our 
republican  form  of  Government  which  was  instituted  to 
protect  all  men  in  the  full  enjoyment  of  their  natural 
rights,  instead  of  depriving  them  of  one  of  them  ? 

If  it  is  a  function  of  sovereignty,  how  can  it  be  exer- 
cised by  any  except  such  as  are  chosen  by  the  sovereign 
people  from  time  to  time  to  exercise  it? 

If  congress  has  a  right  to.  confer  the  monetary  func- 
tion of  sovereignty  upon  a  hereditary  succession,  has  it 
not  the  same  right  to  dispose  of  any  and  all  sovereign 
powers  in  the  same  manner? 

The  two  ffreat  arms  of  national  sovereisrntv  are  the 
purse  and  the  sword;  if  it  is  wise  to  confer  one  upon  a 
hereditary  succession,  why  not  dispose  of  the  other  in 
the  same  manner? 

If  it  is  safe  to  trust  the  monetary  prerogative  of  the  na- 
tion to  the  present  generation  of  bankers  and  their  heirs 
and  assigns  forever,  without  regard  to  fitness  and  quali- 
fication, why  not  trust  the  war  power  of  the  Government 
to  the  present  generation  of  brigadiers,  their  heirs  and 
assigns  forever? 

Yiewed  in  its  true  li^ht,  is  not  the  national  banking: 
system  a  long  step  towards  the  establishment  of  sover- 
eignty based  upon  hereditary  succession,  is  it  not  a  big 
block  wrenched  from  the  temple  of  liberty  and  planted 
as  the  corner  stone  of  imperialism,  a  powerful  element 


NATIONAL    BANKS.  145 

of  sovereignty  crowned  with  the  divine  right  of  kings? 

As  the  Federal  Government  possesses  no  powers  except 
sucli  as  were  delegated  to  it  by  the  people  and  enumer- 
ated in  the  constitution,  was  not  the  bank  act,  conferring 
and  perpetuating  delegated  powders  uyjon  foreigners  and 
aliens,  a  gross  betrayal  of  trust,  if  not  treason  against 
the  people? 

Has  the  Government  a  constitutional  right  to  delegate 
powers  entrusted  to  it,  especially  to  be  exercised  by  it 
for  the  people? 

If  not,  is  not  the  national  bank  act  a  palpable  viola- 
tion of  tlie  constitution,  and  its  enforcement  a  usurpa- 
tion of  power  not  warranted  by  that  instrument? 

The  answer  to  these  inquiries  are  left  to  the  intelli- 
gent reader. 

If  bank  notes  are  money,  from  whence  do  they  derive 
their  money  qualities? 

If  the  Government  can  create  money  for  the  banks, 
why  not  for  itself  and  the  people? 

If  greenbacks  are  money,  how  can  the  power  of  the 
Government  to  create  money  be  denied? 

If  greenbacks  are  not  money,  did  the  bondholders  ever 
loan  any  money  to  the  Government,  having  loaned  noth- 
ing but  greenbacks? 

If  the  dehts  of  a  nation  are  good  security  on  which  to 
base  its  monev,  why  is  not  its  wealth  better? 

If  the  Government  chooses  to  farm  out  its  control  over 
the  currency  to  private  parties,  why  not  grant  the  privi- 
lege to  those  wdio  need  it  in  the  productionof  wealth,  in- 
stead of  giving  it  to  an  idle  monopoly  to  rob,  blackmail 
and  oppress  the  producers  of  wealth? 

Why  should  the  money  power  that  has  accumulated 
10 


146  LABOR    AND    FINANCE   EEVOLUTION. 

•colossal  fortunes  solely  through  Government  protection 
and  favoritism,  be  exempt  from  all  Government  sup- 
port, when  those  out  of  whom  it  has  made  these  for- 
tunes are  compelled  to  bear  all  the  public  burdens  in 
addition  to  being  robbed? 

When  orders  went  forth  from  the  treasury  department 
at  Washington,  through  the  New  York  clearing  house, 
to  the  Wall  Street  gold  exchange,  to  turn  the  gold  dial 
to  100,  and  let  it  remain  there  till  further  orders — what 
was  resumption  but  the  fiat  of  John  Sherman? 

If  it  is  as  inconsistent  to  re-issue  a  United  States  note 
after  it  has  once  been  redeemed  as  it  would  be  tore-issue 
a  note  of  hand  after  it  had  been  paid,  as  the  goldites 
claim,  why  will  not  the  same  principle  apply  to  bank 
notes? 

If  the  right  to  pay  the  bonds  in  greenbacks  is  denied 
on  the  ground  that  one  debt  cannot  be  paid  with  another, 
then  have  any  of  the  soldiers  been  really  paid,  or  any  of 
the  millions  of  debts  and  mortgages,  that  have  been  can- 
celled with  greenbacks  and  bank  notes? 


CHAPTER  X. 


LEGAL  TENDER  PAPER  MONEY. 


Nearly  all  civilized  nations  recocrnize  the  sovereiofu 
right  of  Government  to  make  its  treasury  notes  legal  ten- 
der. In  the  following  table  we  follow^  thefio'ures  of  the  Di- 
rector  of  the  mint,  adding  thereto  the  statement  of  the 
amounts  of  paper  money  which  is  legal  tender  in  the 
countries  named: 


Countries. 


United  States. 
Great  Britain. 

Sweden 

i^orway 

Denmark 

France 

Austria 

Italy.. 

Russia 

Spain 

Peru 

Brazil 

Canada  

Japan 

Turkey 


Gold. 


$305,750,497 

M8,619,043 

15,000.000 

10,000,000 

20,000,1100 

733,400,000 

43,200,000 

17,000,000 

108,000,000 

130,000,000 

63,000 


6,291,385 
30,000,000 


Sliver 

fill 
tender. 


$45,206,200 


366,700,000 
27,360,000 


40.000,0(10 
1,819,900 


10,000,000 


Total 
paper. 


Paper 

lesjal 

tender. 


$683,943,799 

209,148,875 

11,680,000 

10,300.000 

18,900,000 

466,755,000 

322,938,f^54 

315,000,000 

587,907,562 

33,795,000 

13.900,000 

91,000,000 

29,047.742 

14S,000 

100,000,000 


$346,601,000 

200,000,000 

11,680,000 

10.300,000 

18,900,000 

'i"i8,9y3",4ii 

305  000,000 

360.000,000 

40.000,000 

13.900.000 

91,000.000 

10.674.850 

100,000,000 

100,000,000 


The  authorities  for  these  statements  of  the  amount  of 
legal  tender  paper  money  in  these  countries,  are  as  fol- 
lows: United  States,  debt  statement;  Great  Britain, 
weekly  report  Bank  of  England;  Sweden,  American 
Almanac,  1879,  page  242;  Norway,  Report  of  Silver 
Commission,  page  518;  Denmark,  Keport  of  Silver 
Commission,  page  169;  Austria,  Silver  Commission, 
page  114;  Italy,  Silver  Commission,  page  243;  Enssia, 
United   States    Mint    Report,  page  101;    Peru,    Silver 

147 


148  LABOR    AND    FINANCE    REVOLUTION. 

Commission,  page  114;  Brazil,  same,  158;  Canada,  Re- 
port of  United  States  Mint,  1879,  page  30;  Japan,  Re- 
port on  Foreign  Relations,  1879,  page  386;  Turkey  esti- 
mated. 

The  universal  experience  of  all  Governments  is  that 
gold,  as  the  exclusive  legal  tender  money,  is  not  sufficient 
to  enable  any  people  to  carry  on  their  domestic  and  for- 
eign trade,  and  that  where  the  quantity  of  full  legal 
tender  silver  coin  is  not,  in  addition  to  the  gold,  in  large 
quantities,  or  is  excluded  altogether,  then  there  must  be 
an  issue  of  legal  tender  paper,  either  by  the  Government 
direct,  or  by  the  banks  under  the  authority  of  the  Gov- 
ernment, as  is  the  case  in  England  and  the  Scandinavian 
States.  So  thoroughly  is  this  supported  by  the  expe- 
rience of  other  nations  that  if  by  judicial  or  other  pro- 
ceedings the  present  legal  tender  greenbacks  of  this 
country  shall  be  forced  into  retirement,  an  amendment 
to  the  Coiistitution,  authorizing  the  issueof  paper  money 
having  a  legal  tender  quality  will  become  a  national 
necessity. 

THE   GREENBACK. 

At  the  breaking  out  of  the  rebellion,  the  Government 
found  itself  destitute  of  the  means  necessary  to  cany  on 
a  gigantic  war,  and  unable  to  procure  such  means  from 
ordinary  sources.  It  applied  to  the  great  banks  of  the 
country,  and  found  that  aid  from  that  source  was  too 
limited,  and  to  uncertain,  to  be  depended  upon.  The 
banks  finalW  agreed  that,  if  specie  payments  could  be 
indefinitely  suspended,  they  would  supply  the  Govern- 
ment with  an  unlimited  amount  of  their  promises  to 
pay — their    non-interest    bearing    bank    notes — in    ex- 


LEGAL  TENDER  PAPER  MONEY.  149 

change  for  the  Government's  interest-bearing  promises 
to  pay — coin  bonds. 

Wlien  the  Government  saw  that  the  war  had  to  l>e 
carried  on  witliont  the  use  of  coin — with  paper  money 
based  upon  credit — it  conceived  the  idea  that  its  own 
credit,  coupled  with  its  sovereign  power  of  conferring 
the  legal  tender  quality  upon  its  evidences  of  indebted- 
ness, was  far  better,  cheaper,  and  more  reliable  than  that 
of  the  banks. 

This  idea  was  embodied  in  the  first  legal  tender  act, 
and  reported  to  the  House  by  the  Ways  and  Means 
Committee,  January  7,  1862. 

Its  constitutionality  received  the  approval  of  the  At- 
torney General,  and  its  announcement  met  with  popular 
and  unyjaralleled  favor,  as  it  was  destined  to  meet  the 
nation's  needs. 

The  greenback  has  the  safest,  most  reliable,  and  per- 
manent basis  of  any  money  in  the  world. 

No  man  ever  accepts  money  in  payment,  with  a  view, 
or  for  the  purpose  of  obtaining  its  basis.  It  must  be 
borne  in  mind  that  gold  and  silver  coin  require  the  same 
kind  of  basis  to  give  them  their  money  value,  that  green- 
backs do.  Without  the  basis  that  underlies  coin,  the 
precious  metals  would  be  comparatively  worthless.  Let 
the  civilized  world  demonetize  these  metals,  and  for  all 
the  uses  society  has  for  them,  they  would  not  command 
their  weiglit  in  blank  greenback  paper. 

The  moment  their  fiat  money  value  is  taken  from  them 
they  will  cease  to  be  even  ornamental,  for  the  beauty- 
loving  eye  of  unbiased  nature  sees  greater  splendor  in 
colored  glass  than  in  gold  or  silver. 

What  is  the  basis  of  i2:old  and  silver?  Durinir  the 
financial  crisis  of  England  in   1847,  when  legal  tender 


150  LABOR    AND    FINANCE    KP:VOLUTION. 

debt-paying  money  was  in  urgent  demand,  no  man  could 
borrow  a  £5  note  on  a  thousand  dollars'  worth  of  silver. 
Why?  Because  the  basis  of  silver  coin  had  been  re- 
moved by  demonetization,  and  although  i-t  was  intrinsic- 
ally as  valuable  as  ever,  it  did  not  possess  money  functions. 
It  was  a  dead  body  without  the  legal  tender  soul.  The 
basis  of  man  is  his  immortal  spirit;  when  that  takes  its 
flight,  the  body  becomes  valueless,  like  demonetized 
metal.  In  Calcutta,  where  silver  only  is  legal  tender, 
during  a  money  stringency  in  1864,  it  was  impossible  to 
borrow  a  dollar  on  gold;  and  merchants  who  had  hun- 
dreds of  thousands  of  gold  coin,  were  obliged  to  allow 
their  notes  to  go  to  protest,  because  they  could  -not  bor- 
row $10  of  silver  on  a  bushel  of  gold.  The  question  is 
not,  "AV^hat  kind  is  the  dollar,"  but  "What  will  it  do?" 
Has  it  the  legal  tender  basis  under  it,  and  does  it  possess 
debt-paying  functions?  Henri  Cernuschi,  an  eminent 
French  writer  on  finance,  author  of  ''Bi-metallic  Monev." 
said  before  the  congressional  monetary  commission  in 
1877:     ■ 

"■Money  is  a  value  created  by  law.  Its  basis  is  legal  and  not 
material.  It  is,  perhaps,  not  easy  to  convince  one  that  the  value 
of  metallic  money  is  created  by  law.  It  is,  huioever,  the  fact.  If  you 
suppose  that  gold  and  silver  are  not  money — are  not  legal  tender — 
their  value  is  lost.'' 

In  reference  to  legal  tender  greenbacks,  Mr.  Cernuschi 

says : 

"Many  people  suppose  their  value  depends  upon  the  promise  of 
the  Government  to  repay  them  in  metal  one  day  or  other.  This 
promise  does  not  add  to  the  purchasing  power  of  paper  money.  It 
makes  no  diiference  of  what  material  money  is  composed,  whether  it 
is  ci'stly  or  otherwise;  the  law  op  legal  tender  gives  value 
TO  MONEY,  and  that  value  is  increased  or  diminished  in  froportion  as 
its  volume  is  greater  or  lessy 

Men  accept  money  in  payment,  not  to  use,  but  to  ex- 
change for  something  they  can  use.  They  require  a 
basis  as  surety,  that  the  money  will  perform  this  office. 


LEGAL  TENDER  PAPER  MONEY.  151 

Bank  notes,  not  a  legal  tender,  having  no  legal  value, 
simply  a  representative  of  legal  value,  must  have  that 
legal  value  as  a  basis,  or  they  fail  even  to  be  represent- 
atives. Not  so  with  greenbacks  or  coin.  Their  basis  is 
••^he  law,  making  them  a  tender  for  taxes  and  debts,  pul)- 
lic  and  private;  and  as  long  as  the  l^w  continues  their 
basis  is  secure.  The  basis  of  bank  notes,  if  coin,  is 
tnacherous.  It  may  take  wings  and  fly  to  foreign  coun- 
tries, leaving  its  representative  worthless.  But  the  basis 
of  ':he  greenback  is  anchored  in  the  laws  of  the  land,  and 
in  every  debt  of  the  nation,  public  and  private.  Bank 
currency  is  always  considered  safe  when  based  on  thirty- 
three  per  cent,  of  its  face  in  redemption  material,  and 
wher,  based  on  a  reserve  of  resumption  material  in  ex- 
cess tf  its  face,  it  commands  a  premium  over  the  par  of 
the  btsis.  Greenbacks  being  legal  tender  are  based  on 
the  puljlic  and  private  credit  of  the  country.  Every  dol- 
lar of  it  is  redeemable  in  debts  and  taxes  as  good  as 
gold,  and  if  $150,000,000  of  coin  in  the  country  is  am- 
ple to  cirry  $600,000,000  of  paper  at  par,  it  is  strange 
if  fifteen  thousand  millions  of  private  and  corporate 
debts,  aid  $1,000,000,000  of  annual  taxes  cannot  carry 
$2,000,000,000  of  greenbacks  at  par  witli  those  debts  and 
taxes. 

The  bisis  of  coin  is  the  credit  of  the  nations,  or 
the  faith  and  confidence  which  the  public  have  that 
the  different  nations  will  retain  the  enforced  coin 
standard.  Metal  coins  are  simply  representatives 
of  the  mmetized  credit  of  all  nations,  while  greenbacks 
are  repr^entatives  of  the  coined  credit  of  the  United 
States,  eich  being  current  money  within  the  jurisdiction 
of  the  nstion  or  nations  which  thus  represent  their  mon- 
etized  credit,  and    no    further.     Coin  money  does   not 


152  LABOR   AND    FINANCE   REVOLUTION. 

strengthen  a  Government  as  greenbacks  do.  The  whole 
fabric  of  oiir  Government  might  tumble  to  the  ground 
without  loss  to  the  holders  of  gold,  whose  metal  is  as 
valuable  in  Europe  as  here.  In  fact,  wars,  panics,  finan- 
cial crashes,  revolutions  and  periods  of  bankruptcy  are 
harvest  seasons  for  gold  owners,  who  rather  encourage 
such  disasters  than  otherwise.  But  with  greenbacks 
it  is  diiferent.  They  are  based  upon  the  laws  of  tl;e 
United  States  alone,  hence,  with  the  destruction  of  our 
Government  they  would  become  worthless. 

Were  the  legal  tender  money  of  the  United  States 
limited  to  greenbacks  alone,  they  would  aft'ord  the  niost 
])erfect  safeguard  to  the  perpetuity  of  the  Government 
that  could  be  conceived  of,  for  every  man,  even  jf  he 
lacked  patriotism,  would  be  impelled  by  self-interest  to 
snpport  and  defend  the  Government  that  gave  'value  to 
his  money,  as  much  as  he  would  to  defend  the  hot'  that 
contained  it.  So  by  all  the  arguments  of  reasc/n  and 
j^hilosoph}^  the  greenback  is  the  best  and  most  securely 
based  money  in  the  world. 

LEGAL  TENDERS  CONSTITUTIONAL  IN  TIME  OF  PEACE  ji^S  WELL 
AS  IN  TIME  OF  WAR — EVERY  OBJECTION  Aff- 
SWERED  BY  THE  SUPREME  COURT.  I 

The  newspapers  and  orators  in  the  interest,  if  not  in 
the  employ,  of  tlie  bankers  and  bondholders,  aigue  that 
the  Supreme  Court  of  the  United  States  decideji  the  le- 
gal tender  act  unconstitutional  in  time  of  peace  It  will, 
however,  be  found  that  the  court  rendered  no  such  de- 
cision. The  sul^stance  of  the  decision  bearing  on  this 
])oint  was  that  the  mode  or  manner  of  provicing  the 
means  for  the  maintenance  of  the  Governmerit  was  a 
legislative  and    not  a  judicial  question,  and  asit  is  as 


LEGAL  TENDER  PAPER  MONEY.  153 

mucli  the  duty  of  Congress  to  provide  the  means  for 
maintaining  the  Government  in  time  of  peace  as  in  time 
of  war,  its  power  must  be  the  same  in  both  cases.  This 
is  common  sense  as  well  as  common  honestj^. 

The  cases  of  Knox  vs.  Lee,  and  Parker  vs.  Davis  were 
consolidated  and  brought  before  the  Supreme  Court, 
and,  at  the  request  of  the  court,  the  question  of  the  con- 
stitutionality of  the  legal  tender  acts  was  to  be  fully  ar- 
gued, and  finally  settled  by  the  court,  so  that  the  ques- 
tion should  be  forever  put  at  rest.  In  this  case  the  court 
held  that  the  legal  tender  acts  were  constitutional  as 
applied  both  to  past  and  future  contracts.  The  court 
says : 

"Before  we  can  hold  the  legal  tender  acts  unconstitutional  we  must 
be  convinced  they  were  not  appropriate  means,  or  means  conducive 
to  the  execution  of  any  or  all  of  the  powers  of  Congress  or  the  Gov- 
ernment, not  appropriate  in  any  degree  (fur  we  are  not  judges  of  that 
degree  of  appropriation)  or  we  must  hold  they  were  prohibited." — 12 
Wallace,  U.  S.  Supreme  Court  Reports,  page  509. 

"The  degree  of  the  necessity  for  any  congressional  enactment,  or 
the  relative  degree  of  its  appropriateness,  is  for  consideration  in  Con- 
gress, not  here.  When  the  law  is  not  prohibited,  and  is  really  calcu- 
lated to  effect  any  of  the  objects  intrusted  to  the  Government,  to 
undertake  here  to  inquire  into  the  degree  of  its  necessity,  would  be 
to  pass  the  line  whicli  circumscribes  the  judicial  department,  and  to 
tread  on  legislative  ground. — Ibid,  5i2. 

It  will  be  seen  that  tlie  question  is  not  decided  upon 
the  contingency  of  war,  but  the  whole  matter  of  the 
necessity  of  any  constitutional  enactment  is  left  to  con- 
gress.    The  court  says: 

"The  constitution  was  intended  to  frame  a  Government  as  distin- 
guished from  a  league  or  compact,  a  Government  supreme  in  some 
particulars  over  States  and  people.  It  was  designed  to  provide  the 
same  currency  having  a  uniform  legal  value  in  all  the  Stales.  It  was 
for  this  reason  the  power  to  coin  money  and  regulate  its  value  was 
conferred  upo)i.  the  Federal  Government,  while  tlie  same  power  to  emit 
bills  of  credit  was  withheld  from  the  States.  The  States  no  longer  can 
declare  what  shall  be  money  or  regulate  its  value.  Whatever  power 
there  is  over  the  curr-'ncy  is  vested  in  congress.  If  thejjower  to  declare 
what  is  money  is  not  in  congress  it  is  annihilated." — Ibid,  545. 

'^  And  generally  when  one  of  such  powers  was  expressly  denied 


154  LABOR    AND    FINANCE    REVOLUTION. 

to  the  States  only,  it  was  for  the  purpose  of  rendering  the  federal 
power  more  complete  and  exclusive;  how  sensible,  then,  its  framers 
must  have  been  that  emergencies  might  arise  when  the  precious  met- 
als 'might  "prove  iruulequate  to  the  necessities  of  the  Government  and  the 
demands  of  the  people — when  it  is  remembered  that  paper  money  was 
almost  exclusively  in  use  in  the  States  as  a  medium  of  exchange,  and 
when  the  great  evil  sought  to  be  remedied  was  the  want  of  uniform- 
ity in  tiie  current  value  of  money,  it  might  be  argued,  we  say,  that 
the  gift  of  power  to  coin  money  and  regulate  the  value  thereof,  was 
understood  as  conveying  general  power  over  the  currency  and  which 
had  belonged  to  the  States  and  whicli  they  had  surrendered."' — Ibid, 
54(3         *        *        *        * 

"  By  the  obligation  of  a  contract  to  pay  money  is  to  pay  that  which 
law  shall  recognize  as  money  when  the  payment  is  to  he  made. 

"  If  there  is  anything  settled  by  decision  it  is  this,  and  we  do  not 
understand  it  to  be  controverted.  No  one  ever  doubted  that  a  debt 
of  one  thousand  dollars,  contracted  before  1834  could  be  paid  by  one 
hundred  eagles  coined  after  that  year,  thougii  they  contained  no  more 
gold  than  ninetyfour  eagles  when  the  contract  icas  made,  and  this  is 
not  because  of  the  intrinsic  value  of  the  coin,  but  because  of  its  legal 
value.  The  eagles  coined  after  1»34  were  not  money  until  they  were 
authorized  by  law,  and  had  they  been  coined  before,  without  a  law 
fixing  their  legal  value,  they  could  no  more  have  paid  a  debt  than 
uncoined  bullion,  or  cotton  or  wheat.  Every  contract  for  the  pay- 
ment of  money  is  necessarily  subject  to  the  constitutional  power  of 
the  Government  over  tlie  currency,  whatever  that  power  may  be.  and 
the  obligation  of  the  parties  is,  therefore,  assumed  with  reference  to 
that  power."— Ibid,  .548-9. 

"  If  therefore,  they  (the  legal  tenders)  were  what  we  have  endeav- 
ored to  show,  appropriate  ends,  tiiey  were  not  transgressive  of  the 
authority  vested  in  congress." — Ibid,  552. 

"It  is  hardly  correct  to  speak  of  a  standard  value.  The  constitu- 
tion does  not  speak  of  it.  It  contemplates  a  standard  for  that  whicli 
has  gravity  or  extension  ;  but  value  is  an  ideal  thing.  The  Coinage 
Acts  fix  its  unit  as  a  dollar,  but  the  gold  or  silver  thing  we  call  a  dol- 
lar is,  in  no  sense  a  standard  of  a  dollar,  it  is  a  representative  of  it. 
There  might  never  have  been  apiece  of  money  of  the  denomination 
of  a  dollar.  *  *  *  * 

"  It  will  be  seen  that  we  hold  the  acts  of  congress  constitutional  as 
applied  to  contracts  made  before  or  after  their  passage." — Ibid,  553. 

For  the  iiiforraation  of  those  who  profess  to  believ^e 
that  the  court  was  packed  to  procure  a  decision  confirm- 
ing the  constitutionality  of  the  legal  tender  act,  I  will 
give  the  opinion  of  Chief  Justice  Marshall,  wlio  in  the 
case  of  McCullough  vs.  Maryland,  says: 

"  When  the  act  is  not  prohibited,  and  is  calculated  to  effect  any  of 
the  objects  intrusted  to  the  Government,  to  undertake  here  to  incjuire 
into  the  degree  of  its  necessity  would  be  to  p>nss  the  line  which  circum- 
scribes the  judicial  department,  anil  to  tread  on  legislative  ground."  , 


to 


LEGAL    TENDER    PAPER    MONEY.  155 

THE    BONE    OF    CONTENTION. 

Seventeen  years,  side  by  side,  the  greenback  lias  prov^ed 
itself  under  all  circumstances  fully  e(|ual  to  the  bank 
note.  There  is  no  instance  on  record  where  the  bank 
note  has  been  jjreferred,  and  no  instance  where  the 
greenback  has  been  refused  in  the  ordinary  commercial 
transactions  of  the  country.  It  is  an  established  fact, 
which  no  one  will  dispute,  that  as  a  medium  of  exchange, 
a  tool  of  trade,  the  greenback,  has  established  its  equal- 
ity at  least,  with  the  best  bank  note  ever  issued.  The 
bank  note  has  no  qualities  which  render  it  superior  to 
the  greenback.  On  the  other  hand,  does  the  greenback 
possess  any  virtues  or  qualities  not  possessed  by  the 
bank  note,  which  recommend  it  as  superior  to  the  bank 
note? 

It  does.  There  are  three  important  considerations 
why  the  greenback  should  displace  the  bank  note  en- 
tirely. 

1.  It  is  legal  tender  between  man  and  man,  which  the 
bank  note  is  not. 

2.  "When  the  greenback  is  issued,  it  serves  the  Gov- 
ernment as  money  for  the  amount  its  face  represeiits, 
saving  the  people  that  amount  of  taxation.  When  the 
Government  prepares  a  million  dollars  of  greenbacks,  it 
has  come  in  possession  of  that  amount  of  money  witli- 
out  drawing  it  from  society,  by  direct  ur  indirect  taxa- 
tion. It  is  so  much  clear  gain  for  the  people.  The 
substitution  of  greenbacks  for  the  amount  of  bank  notes 
now  outstanding  would  be  a  net  gain  of  §387,181,418  to 
the  Government,  and  save  in  taxation  that  amount  to 
the  taxpayers. 

3.  It  costs  nothing  to  keep  the  greenback  in  circula- 


156  LABOR    AND    FIXANCE    REVOLUTION. 

tion.  The  expense  of  printing,  is  all  that  attaches  to 
it,  and  that  is  not  greater  than  tlie  cost  of  printing  tlie 
l>ank  note,  which  the  Government  also  has  to  pay;  but 
the  bank  note  costs  an  average  of  5  percent,  per  annum, 
the  amount  of  interest  the  people  are  compelled  to  pay 
on  the  bonds  upon  which  it  is  based.  Already  the  in- 
dustries of  the  country  have  redeemed  every  hank  note  in 
circulation^  in  gold,' — by  paying  since  1863,  $350,000,- 
000  of  gold  interest  on  the  bonds  held  by  the  Govern- 
ment, as  security  for  the  bank  circulation.  The  Gov- 
ernment furnishes  the  security  for  the  bank  note,  and 
the  people  pay  the  bank  for  the  use  of  it.  JS^o  one  de- 
nies but  at  least  $1,000,000,000  of  currency  is  necessary 
for  this  country  when  enterprise  is  in  its  full  tide  of  ac- 
tivity. If  the  competing  greenback  was  out  of  the  way, 
there  is  not  the  least  doubt  but  the  bank  currency  would 
be  immediately  inflated  to  that  sum,  or  more.  The  great 
issue  now  is,  which  kind   of  paper  money  shall   prevail. 

The  banks  are  determined  to  drive  out  all  competi- 
tion, that  thev  mav  have  the  l)enefit  of  the  entire  circu- 
lation.  The  Greenback  party  is  equally  determined  that 
the  people  shall  have  the  beneflt  of  it,  by  allowing  the 
Government  to  issue  the  whole  amount,  and  save,  not 
only  that  amount  from  taxes,  but  forty  or  fifty  millions 
every  year  of  interest  which  they  will  be  compelled  to  pay 
on  the  bonds  upon  which  the  bank  note  must  be  based. 

The  pecuniary  stake  at  issue  between  the  Greenback 
party  and  the  Bank  party 'is  $1,000,000,000  cash  down, 
and  at  least  $10,000,000  a  year  for  all  time  to  come. 

If  the  opposition  prevail,  the  Government  will  lose 
the  $350,000,000  of  greenbacks  now  in  circulation,  by 
being  obliged  to  redeem  and  retire  them;  a  perpetual 
bank  tax  of  forty  or  fifty  millions  a  j-ear  will  be  saddled 


LEGAL  TENDER  PAPER  MONEY.  157 

x 

upon  the  country,  and  to  get  the  $1,000,000,000  of  bank 
currency  into  circulation,  $3,000,000,000  of  property 
will  have  to  be  mortgaged  to  the  banks,  and  an  annual 
interest  of  not  less  than  $100,000,000  paid  thein,  time 
without  end. 

There  is  another  consideration  of  no  less  importance 
than  those  already  alluded  to,  in  connection  with  this 
matter,  and  that  is  the  political  danger  of  depriving  the 
people  of  the  right  to  control  so  important  and  dangerous 
a  power  as  the  monetary  prerogative;  and  conferring  it 
upon  a  hereditary  and  alien  dynasty.  There  is  more 
truth  than  poetry  in  the  declaration  that  "  money  is 
power."  He  who  holds  the  purse,  commands  the  sword 
of  any  nation,  and  nine-tenths  of  the  public  debt,  which 
constitutes  the  foundation  of  our  banking  system,  is  in 
the  control  of  foreign  capitalists,  who  hate  democracy, 
and  flourish  best  in  the  soil  of  imperialism.  Are  the 
people  of  America  prepared  to  surrender  their  sover- 
eignty into  the  hands  of  aliens  and  tyrants? 

Some  one  objects  to  the  greenback  full  legal  tender, 
because  it  is  irredeemable — and  claims  the  superiority 
of  the  bank  note  because  it  is  redeemable.  Money  is 
fit  for  nothing  else,  it  can  be  used  for  no  other  purpose 
while  it  remains  money.  No  matter  of  what  it  is  com- 
posed. Money  is  created  to  pay  for  labor,  and  debts, 
and  to  exchange  commodities,  and  needs  redemption  no 
more  than  a  horse  or  a  steamboat.  "We  might  object  to 
buying  farms,  and  stock,  and  tools,  because  they  are  ir- 
redeemable. The  righteous  need  no  redemption — only 
the  damned — hence  it  is  well  for  the  bank  note  that  sal- 
vation has  been  provided  for  it,  and  its  savior  and  re- 
deemer, so  far,  has  been  the  greenback,  which  never  fell, 
but  is  the  redeemer  of  all  things  temporal,  even  the 
nation  itself. 


CHAPTER  XL 


THE  PUBLIC  DEBT. 


The  following  table  exhibits  the  classification  of  the 
interest-bearing  indebtedness  of  the  United  States,  on 
August  31,  1S65,  and  on  the  1st  of  July  annually,  in- 
cluding interest-bearing  treasury  notes  used  as  currency, 
as  reported  by  Secretary  Sherman,  January  1,  ISSO: 
[F)-om  Report  of  Secretary  of  Treasury^ 


Date. 


Aug. 
July 
July 
July 
July 
July 
July 
July 
July 
July 
July 
July 
July 
July 
July 


.31,  186j 

1,  IStiti  

1,  IStiT 

1,  1868 

1,  1869 

1,  1870 

1,  1871 

1,  187-.i 

1,  1873 

1,  1874 

1.  1875 

1.  1876 

1,  1877 

1,  1878 

1,  187ft  


6  per  cent, 
bonds. 


per  cent,  4i  per  cent, 
bond^.  bonds. 


$908,518 

1,008.388 

l,4-.il,llU 

1,841,.521 

1,886.341 

1,764,93-^ 

1.613,8 

1,374,883 

l,-.i81,d38 

l,'.il3,624 

1,100,865 

981,999 

854.  21 

7.38.619 

310  93-2 


091 
,4r.<i 
,719 

800 
,300 
.3(10 

:i00 
,^^00 

650 

700 
.550 

6.50 : 
,8.J0 

000 
,.500 


$199,792,100 
198,528,435 
198,533,435 
221 ,588  400 
221,589,300 
2-'l,. 589,300 
274,236.450 
414.567,300 
414,567,300 
510.628,0.50 
607,1.32.750 
711,685,800 
703,266,650 
703,266.650 
646,905. .500 


$140,000,000 
240,000,000 
2.-)0.000.000 


4  per  cent, 
bonds. 


Total. 


$98,850,000 
679.878.110 


,108 
,206 
,619, 
063 
10 
,986 
8S8 


.310 
.916 
644 

no, 

,930 
..521 
133 


.789 
.695 
.724 
.707 


4.51 
.805 
252 

998 


69() 
697 
780, 
887 


,685 
,&'^8 
,735 
,716 


191 
.904 

154 
,200 

600 
,600 

750 

100 
,9,0 
,750 

;i00 

451) 
,500 
,650 

,no 


The  interest-bearing  public  debt  is  a  burden  which 
never  ought  to  have  been  imposed  upon  the  nation.  It 
is  the  most  stupendous  fraud  and  swindle  ever  perpe- 
trated upon  a  free  people.  It  was  conceived  in  fraud, 
and  brought  foi'th  in  inicpiity.  It  was  a  scheme  to  rob 
and  enslave  -10,000,000  of  people  after  they  had  eman- 
cipated 4,000,000  at  the  sacrifice  of  rivers  of  blood  and 
millions  of  treasure. 

Before  the  legal  tender  act  had  passed  the  threshold 
of  legislation,  it  was  met  by  the  money  sharks  of  Wall 

153 


THE    PUBLIC    DEBT.  159 

Street.  There-was  no  stealings  in  it  for  the  money  power. 
There  was  no  seam  left  open  for  the  grappling  irons  of 
the  financial  pirate.  There  was  no  tap,  from  which  the 
usurer  could  suck  the  blood  of  toil.  It  met  violent  or- 
ganized opposition.  From  whom?  From  the  soldier, 
who  was  risking  his  life  in  defence  of  his  country?  No. 
From  the  farmer,  who  supplied  food  and  mules?  From 
the  manufacturer,  who  furnished  guns,  wagons,  army 
blankets,  or  ships  of  war?  No.  Not  one  of  all  tlie  em- 
ployes, or  creditors  of  the  Government,  from  the  Presi- 
dent down  to  the  army  teamsters,  but  what  rejoiced  at 
the  prospect  of  receiving  the  Government's  own  legal 
tender  money,  in  exchange  for  anything  he  had  to  sell, 
or  any  service  he  could  render  during  the  war,  be  it  six 
months  or  seven  years. 

Who,  then,  opposed  the  coinage  of  free  legal  tender 
money?  Why,  the  banks  and  the  money  power.  What 
interest  was  it  to  them?  What  had  they  to  do  with  this 
new  money?  Had  they  anything  to  sell  to  the  Govern- 
ment? Not  a  thing.  Were  they  going  to  enlist,  and 
wanted  pay  other  than  greenbacks?  No;  not  a  recruit 
from  that  quarter. 

We  will  show  you  how  and  why  they  opposed  it.  We 
are  told  that  on  the  11th  of  January,  only  four  days  after 
the  introduction  of  the  bill,  the  wolf-howl  that  had, 
during  the  time,  echoed  from  bank  to  bank,  called  to 
Washington  a  convention  of  the  Money  Power,  consist- 
ing of  four  delegates  from  the  New  York  banks,  three 
from   Philadelphia,  and  three  from  Boston. 

They  saw  in  the  legal  tender  bill  a  scheme  that  would 
cut  off  all  future  chance  for  them  to  rob  the  people. 
They  saw  it  would  transfer  the  monopoly  of  the  money 
from  their  hands,  to  the  control  of  the  peo]3le. 


160  LABOE    AND    FINANCE    REVOLUTION. 

They  saw  in  it  a  precedent  which,  if  permitted  to  be 
tested,  would  ever  afterward  enable  the  Government  to 
relieve  itself  and  the  people,  without  being  obliged  to  sub- 
mit to  the  extortions  of  the  usurer. 

In  short,  thev  saw  the  handwriting  of  their  downfall, 
and  the  emancipation  of  labor  and  production,  written 
on  the  lescal  tender  greenback. 

If  the  nation's  necessities  compelled  it  to  resort  to 
its  own  bills  of  credit,  they  must  go  forth  under 
sentence  of  death  to  fight  the  battles  of  the  country. 

What  arguments  were  used,  or  what  undue  influences 
were  brought  to  bear  upon  the  law-makers  of  the  Gov- 
ernment, will  probably  never  be  known.  The  result  is 
a  matter  of  record.  Every  greenback  that  went  out  to 
fight  the  nation's  battles,  was  accompanied  by  a  bond- 
shark,  to  gobble  it  up,  as  soon  as  it  had  performed  its 
service.  The  act  of  1802,  authorizing  the  issue  of  the 
first  $150,000,000  of  greenbacks,  authorized  $500,000,000 
of  bonds  to  absorb  them. 

There  never  was  a  day,  after  the  passage  of  the  first 
legal  tender  act,  but  what  the  Government  was  in  pos- 
session of  all  the  money  it  needed,  of  its  own  creation, 
M'ithout  borrowing  a  dollar,  or  selling  a  bond. 

The  only  object  of  the  bond  was  to  enable  the  money 
sharks  again  to  get  control  of  the  money  of  the  country, 
which  they  never  could  do  without  the  bond.  The  Gov- 
ernment established  the  fact  that  it  could  meet  all  its 
obligations,  purchase  all  its  supplies,  and  defray  every 
expense,  b}"  its  own  legal  tenders;  and  if  so,  what  was 
the  necessity  of  borrowing? 

You  answer,  that  the  bonds  were  necessary  to  absorb 
the  excess,  occasioned  by  the  extraordinary  demands  of 
the  war. 


THE    PUBLIC    DEBT.  161 

I  deny  that  there  ever  was  an  excess.  Let  only  him 
dare  assert  it,  who  had  more  than  he  could  find  use  for. 

Even  if  there  was  an  excess,  the  bonds  did  not  dimin- 
ish it.  The  excess  has  only  been  transferred  from  the 
pockets  of .  laborers  and  wealth  producers,  to  those  of 
usurers,  importers  and  international  dealers. 

Every  bond  is  used  as  money.  They  are  used  by 
English  capitalists,  to  buy  American  cotton  and  bread 
stuffs,  and  by  American  dealers  to  purchase,  import, 
and  glut  our  market  with  what  our  own  labor  should 
produce,  but  cannot;  for  the  want  of  the  very  money 
which  was  destroyed,  that  these  bonds  might  live. 

Just  in  proportion  as  the  people's  money  has  been 
contracted,  that  of  the  money  king  has  been  inflated. 

Just  as  contraction  and  specie  limitation  weakens  and 
impoverishes  the  masses,  bond  inflation  strengthens  and 
enriches  the  few. 

That  their  inflated  paper  bond  money  may  be  current 
all  over  the  world,  they  require  it  to  draw  interest,  and 
that  they  may  be  relieved  of  the  burden  of  such  interest, 
they  compel  labor  and  its  products  to  pay  all  the  taxes. 

The  difference  to  the  people  of  America,  between  the 
greenbacks,  before  they  were  converted  into  bonds,  and 
the  bonds,  is  as  follows: 

The  fifteen  hundred  million  dollars  of  greenbacks, 
earned  their  owners  nothing  while  lying  idle.  To  be 
profitable  every  $.500  had  to  give  a  laborer  a  year's  em- 
ployment, and  the  total  amount  kept  three  million  la- 
borers constantly  at  work. 

In  bonds,  they  earn   their  owners  full  as  much,  while 

resting  in  their  safes;  but  throw  three  millions  of  men 

out  of  employment,  and  compel  property  owners,  who 

receive  no  benefit  from   them,  not  only  to  support  the 

11 


162  LABOR    AND    FINANCE    KEVOLUTION. 

three  millions  of  idle  laborers,  and  their  families,  but  to 
pay  the  bondholders  $100,000,000  annually,  for  the  fun 
of  the  thing.  The  people  and  tax  payers  have  got  tired 
of  this.  If  they  are  to  be  taxed  to  support  the 
Government,  they  claim  the  benefits  of  the  Government 
and  taxation.  When  bonds  are  given  for  the  loan  of 
money,  and  that  money  circulated  among  the  people, 
they  can  afford  to  bear  the  burdens  of  the  debt;  but 
when  such  bonds  are  given,  to  absorb  and  destroy  the 
people's  money,  thus  creating  new  burdens,  by  destroy- 
ing the  very  means  necessary  to  bear  those  already  ex- 
isting, the  sufferers  will  refuse  to  submit  to  the  outrage, 
and  will  certainly  take  the  first  opportunity  to  relieve 
themselves.  It  matters  not  what  the  result  may  be, 
the  American  people  have  drank  too  deep  at  the  fount 
of  liberty,  to  submit  to  be  enslaved  by  the  bond  fraud 
schemes  of  Europe,  and  now  give  fair  notice  that  if  the 
same  money  that  purchased  the  bond,  will  not  pay  it, 
the  entire  fraud  will  be  repudiated. 

THE    PUBLIC    DEBT    OF   FRANCE    AND    AMERICA. 

The  public  debt  of  France  is  represented  by  interest- 
bearing  obligations,  called  Rentes,  which  are  issued  in 
small  denominations,  as  low  as  100  francs  ($20),  and 
held  mostly  by  the  peasantry  and  laboring  population, 
as  savings  investments.  In  1867  the  debt  of  France 
w'as  held  by  1,095,683  persons,  averaging  about  $2,000 
each.  It  is  now  still  more  widely  distributed,  Spoflord, 
librarian  of  congress,  claiming  that  "  half  the  families 
in  France  have  money  in  public  funds."  The  debt  is, 
therefore,  no  burden  to  the  people.  Its  interest  goes  to 
the  masses  of  the  taxpayers. 

In  England,  on  the  other  hand,  her  great  debt  of 


THE    PUBLIC    DEBT.  163 

$3,850,000,000  is  in  the  hands  of  only  126,331  persons, 
thus  averaging  more  than  $30,000  each.  In  America 
the  public  debt  is  also  in  the  hands  of  a  few,  with  this 
diflference:  In  both  England  and  France  the  Government 
obligations  are  taxed  pro  rata  with  all  other  investments, 
and  have  to  bear  their  proportion  of  the  public  burdens, 
while  in  America  thej  are  exempt  from  all  taxation, 
thus  throwing  their  entire  burden  upon  those  who  reap 
no  profit  from  them. 

The  real  object  of  our  bonded  debt  was  to  provide  a 
foundation  for  a  huge  national  banking  system,  as  the 
basis  of  a  colossal  money  power,  who,  by  conti'olling  and 
monopolizing  the  monetary  prerogative  of  the  nation, 
could  control  values,  and  through  usury,  absorb  the 
wealth  and  surplus  earnings  of  labor  and  enterprise. 

The  fact  that  the  vast  sum  required  to  carry  on  the 
late  war,  which  aggregated  nearly  $7,000,000,000,  all 
but  about  $500,000,000  was  provided  by  the  issue  of 
United  States  legal  tenders  and  treasury  notes,  and  from 
the  legitimate  revenues  of  the  Government,  such  as 
duties  on  imports,  internal  revenue,  sales  of  public 
lands  and  income  taxes,  and  all  this,  without  being  per- 
ceptibly felt  by  the  taxpaying  industries  of  the  country, 
is  evidence  that  the  entire  amount  might  have  been  paid 
in  the  same  manner,  without  a  bond  to  disgrace  the 
credit  of  the  nation,  or  to  check  the  march  of  prosper- 
ity which  an  ample  volume  of  Government  currency 
had  set  in  motion. 

And  when  we  consider  that  the  country  has  had  to 
pay  already  over  $1,600,000,000  of  interest  on  the  pub- 
lic debt,  it  is  proof  positive  that  the  bonds  were  wholly 
unnecessary,  and  have  been  a  curse  to  the  extent  of  the 
interest  already  paid  upon  them,  besides   fostering,  and 


164:  LABOR   AND   FINANCE   REVOLUTION. 

building  up  a  giant  rnonied  oligarchy,  the  most  dangerous 
for  civil  liberty,  and  our  republican  institutions  that 
can  be  conceived. 

The  money  kings  siezed  the  opportunity,  when  our 
Government  was  in  distress,  when  it  was  struggling  with 
a  giant  foe  in  front,  to  stab  it  in  the  rear.  They  took 
this  opportunity  to  compel  the  nation  to  disgorge  its 
interest-bearing  obligations,  and  to  saddle  a  monstrous 
perpetual  debt  upon  the  people  as  a  future  means  of  rob- 
bing the  wealth  producers  after  they  should  have  returned 
from  the  field  of  victory  and  blood,  to  their  avocations 
of  peace.     Now  for  the  proof 

^Nominally,  the  bonds  were  due  and  payable  in  twenty 
years  from  date  of  issue.  On  the  2d  of  February,  1863, 
John  Sherman  reported  the  National  bank  bill  in  the 
Senate.  This  bill,  which  is  the  act  now  in  existence, 
provided  for  a  national  currency,  based  on  united 
STATES  BONDS.  It  was  recommeuded  by  Secretary  Chase, 
December,  1862,  l)ut  was  not  acted  upon,yo/'  the  want 
of  honds  as  a  basis. 

Bonds  must  be  provfded. 

But  the  legal  tender  act  as  introduced  by  Thad  Stevens, 
and  passed  the  House  of  Representatives  February  6, 
1862,  would  do  away  with  the  necessity  of  both  bonds 
and  national  bank  currency,  so  it  was  defeated  in  the 
Senate  through  the  influence  of  the  eastern  bankers. 

Tlie  greenback  would  be  too  good.  With  a  paper  cir- 
culation confined  to  greenbacks,  what  could  the  bankers 
do,  and  what  would  banking  be  worth?  Hence  the  green- 
backs were  purposely  depreciated.  Bonds  were  pro- 
vided to  absorb  them. 

Fifteen  different  varieties  of  treasury  notes  were  is- 
sued, all  convertible  into  bonds,  at  par,  but  the   bonds 


THE    PUBLIC    DEBT.  165 

were  withheld  until  the  nation's  paper  had  been  so 
depreciated  by  the  people's  agents  in  high  places,  that 
one  dollar  of  gold  would  purchase  two  or  three  dollars 
of  treasury  notes,  every  one  of  which  was  par  for  bonds. 
Speaking  of  the  national  banking  proposition,  Mr. 
Chase  said  in  his  report,  in  1862: 

"The  central  idea  of  the  measure  is  the  establishment  of  a  sound 
uniform  currency  throughout  the  country  upon  the  fouadation  of 
national  credit  (in  other  words,  upon  a  national  dahi),  making  this  the 
settled  policy  of  the  country.'" 

As  the  bonds  were  due  and  payable  in  twenty  years, 
at  furthest,  it  could  hardly  be  called  a  settled  policy, 
whose  foundation  was  intended  to  be  removed  at  the  ex- 
piration of  that  time.  Four  years  later,  in  December, 
1866,  Hugh  McCulloch,  then  secretary  of  the  treasury, 
in  his  annual  report,  said: 

"The  national  banking  system  loan  intended,  vihWe  not  invading 
the  rights  of  the  Slates,  nor  damaging  private  interests,  to  furnish  the 
people  icith  a  permanent  paper  circulation.  The  United  States 
notes  were  intended  to  meet  a  temporary  emergency  and  to  be  retired 
when  the  emergency  had  passed.''^ 

Now,  the  foundation  of  the  national  currency  being 
the  public  debt,  and  the  expressed  declaration  that  this 
system  of  currency  was  to  be  the  fixed  and  permanent 
policy  of  the  country,  is  positive  proof  that  the  original 
intention  was  to  make  the  bonds  permanent,  perpetual 
and  never  payable. 

In  1869,  when  the  credit-strengthening  act  was  passed, 
changing  the  payment  of  the  bonds  from  greenbacks  to 
coin,  there  was  outstanding,  $1,500,000,000  of  5.20  bonds, 
all  to  become  due  and  payable  within  the  next  twelve 
years. 

At  that  time  the  coin  resources  of  the  Government 
were  no  more  than  sufficient  to  enable  it  to  meet 
its  current   interest  obligations,  nevertheless  congress 


166  LABOR    AXD    FINANCE    REVOLUTION. 

obligated  it  to  "^2^^  fifteen  hundred  millions  of  gold  and 
silver. 

This  was  an  apparent  impossibility.  It  was  intended 
to  be  such. 

The  act  was  for  the  express  purpose  of  immortalizing- 
the  public  debt,  that  it  might  never  be  paid. 

But  when  Nevada  opened  her  rich  vaults  of  silver 
and  made  it  possible  to  pay  the  debt  in  accordance  with 
the  new  terms  imposed,  that  metal  was  demonetized, 
and  payment  limited  to  gold. 

It  may  seem  strange  to  some  that  the  bond-holders 
should  desire  such  legislation  as  would  absolutely  defeat 
j)ayment  to  them. 

But  they  regard  the  bonds  as  the  best  paying  invest- 
ment they  could  put  their  money  into. 

First.     They  are  untaxed,  and  their  annual  interest* 
is  twice  the  average   profits  of  money  invested  in  pro- 
ductive industry. 

Second.  While  lying  idle,  drawing  this  interest, 
the}'  furnish  collaterals  for  the  loan  of  90  per  cent,  of 
their  value  from  the  Government  at  1  per  cent.,  which 
the  holders  can  re-loan  to  enterprise  at  from  10  to  15 
per  cent,  per  annum. 

The  bondholders  have  the  strongest  possible  induce- 
ment to  perpetuate  the  public  debt. 

The  public  debt  of  France  is  as  near  a  "public  bless- 
ing" as  any  debt  can  be.  It  is  distributed  among  all 
the  people,  who  use  it  both  as  a  safe  and  profitable  in- 
vestment for  tlieir  small  savings,  and  as  a  medium  of 
exchange. 

It  imposes  no  unjust  or  unequal  burdens.  It  pays  its 
own  way.  It  is  not  used  as  the  basis  for  banking  or  to 
foster  any  monopoly  or  money  oligarchy. 


THE    PUBLIC    DEBT.  167 

To  saj  that  our  bonds  were  issued  and  sold  to  raise 
money  to  carry  on  the  war,  is  absurd  and  false. 

It  was  a  year  and  a  half  after  they  were  authorized 
before  they  were  put  upon  the  market,  and  when  they 
were  offered,  it  was  not  because  the  Government  needed 
the  money. 

This  is  the  proof: 

On  the  3d  of  March,  1863,  before  a  bond  had  been 
issued,  the  Secretary  of  the  Treasury  was  authorized  to 
issue  $900,000,000  of  legal  tenders  and  other  treasury 
notes— $300,000,000  for  the  current  year,  and  $600,000,- 
000  for  the  year  following;  and  not  until  the  May  follow- 
ing were  the  bonds  authorized  by  act  of  Feb.  25,  1862, 
offered  for  sale. 

This  $900,000,000  of  new  issue  were  thrown  into 
circulation  in  order  to  depreciate  the  currency,  so  that 
bonds  could  be  had  cheap,  and  it  had  the  effect.  The 
Government  did  not  place  its  bonds  on  the  market 
because  it  needed  money,  but  it  did  authorize  an  inor- 
dinate volume  of  money  in  order  to  depreciate  it,  as 
well  as  that  already  out,  so  as  to  enable  the  money  sharks 
to  buy  up  their  future,  banking  basis  for  a  song;  and 
then,  in  order  to  get  the  Government  issues  out  of  the 
way,  so  the  bank  sharks  could  have  full  swing,  the  peo- 
ple's money  was  destroyed  as  fast  as  it  was  paid  into  the 
treasury  for  bonds,  which  resulted  in  the  losses,  bank- 
ruptcies, ruin,  desolation  and  death,  of  the  panic  of  1S73, 
and  subsequently. 


CHAPTER  XII. 


FINANCE  LEGISLATION  FROM  1S60  TO  1876. 

SUMMARY    OF    LAWS. 
[  From  Gold  and  Debt.] 
Act  June  22,  1860. 

[This  act  authorized  the  issue  of  $21,000,000  of  6  per  cent,  bonds 
to  be  used  in  the  redemption  of  outstanding  treasury  notes.] 

Act  December  11,  1860. 

That  the  President  of  the  United  States  be  authorized  to  cause 
treasury  notes  to  be  issued  for  such  sums  as  the  exigencies  of  the 
public  service  may  require,  but  not  to  exceed  at  any  time  the  amount 
of  ten  millions  ($10,000,000).  That  such  notes  shall  be  redeemed 
after  the  expiration  of  one  year.  They  shall  bear  interest,  six  per 
cent,  per  annum. 

Act  February  8,  1861. 

That  the  President  of  the  United  States  be  authorized  to  borrow, 
on  the  credit  of  the  United  Stales,  a  sum  not  exceeding  twenty-five 
millions  ($25,000,000).  That  stock  shall  be  issued  for  the  amount  so 
borrowed,  bearing  interest  not  exceeding  six  per  centum  per  annum, 
and  to  be  reimbursed  within  a  period  not  beyond  twenty  years  and 
not  less  than  ten  years. 

Act  March  2,  1861. 

That  the  President  of  the  United  States  be,  and  hereby  is, 
authorized,  at  .any  time  within  twelve  months  from  the  passage  of 
this  act,  to  borrow,  on  the  credit  of  the  United  States,  a  sum  not 
exceeding  ten  millions  of  dollars:  Provided,  That  no  stipulation  or 
contract  shall  be  made  to  prevent  the  United  States  from  reim- 
bursing  any  sum  borrowed  under  the  authority  of  this  act  at  an}^ 
time  after  the  expiration  of  ten  years  from  the  1st  day  of  July  next, 
by  the  United  States  giving  three  months'  notice,  to  be  published 
in  some  newspaper  published  at  the  seat  of  Government,  of  their 
readiness  to  do  so;  and  no  contract  shall  be  made  to  prevent  the 
redemption  of  the  same  at  any  time  after  the  expiration  of  twenty 
years  from  the  said  1st  day  of  July  next,  without  notice.  That  stock 
shall  be  issued  for  the  amount  so  borrowed,  bearing  interest  not 
exceeding  six  per  cent,  per  annum. 

Act  July  n,  1861. 

That  the  secretary  of  the  treasury  be  authorized  to  borrow,  on  the 
credit  of  the  United  Slates,  within  twelve  months,  a  sum  not  exceed- 

168 


FINANCE    LEGISLATION.  169 

ing  $250,000,000,  for  -which  he  is  authorized  to  issue  coupon  bonds 
or  registered  bonds  or  treasury  notes  in  such  proportion  as  he  may 
deem  advisable.  The  bonds  to  bear  interest  not  exceeding  seven 
per  cent,  per  annum,  payable  semi-annually,  irredeemable  for  twenty 
years,  and  after  that  at  the  pleasure  of  the  United  States,  and  the 
treasury  notes  to  be  of  denominations  not  less  than  $50,  payable 
three  years  after  date,  with  interest  at  the  rate  of  seven  and  three- 
tenths  per  cent,  per  annum.  And  the  secretary  may  also  issue,  in 
exchange  for  coin,  treasury  notes  of  a  less  denomination  than  $50, 
not  bearing  interest  but  payable  on  demand  at  the  assistant  treas- 
uries of  the  United  States— or  treasury  notes  bearing  interest  at  the 
rate  of  3.65  per  cent,  per  annum,  payable  in  one  year  from  date  and 
exchangeable  at  any  time  for  treasury  notes  (7-30s)  for  $50  and 
upward. 

That  the  secretary  is  authorized,  whenever  he  shall  deem  -it 
expedient,  to  issue,  in  exchange  for  coin  or  in  payment  of  public 
dues,  treasury  notes  of  any  of  the  denominations  hereinbefore  speci- 
fied, bearing  interest  not  exceeding  six  per  cent,  per  annum,  and 
payable  at  any  time  not  exceeding  twelve  months  from  date ;  that  the 
amount  of  notes  so  issued  shall  at  no  time  exceed  $20,000,000. 

Act  August  5,  1861. 

That  the  secretary  of  the  treasury  is  authorized  to  issue  bonds  of 
the  United  States,  bearing  interest  at  six  per  cent,  per  annum,  and 
payable  at  the  pleasure  of  the  United  States  after  twenty  years  from 
date.  If  any  holder  of  treasury  notes  bearing  interest  at  the  rate  of 
seven  and  three-tenths  per  cent,  per  annum  desire  to  exchange  the 
same  tor  said  bonds,  the  secretary  may,  at  any  time  before  the 
maturity  of  said  treasury  notes,  issue  to  said  bolder,  in  payment 
thereof,  an  amount  of  said  bonds  equal  to  the  amount  due  on  said 
treasury  notes;  nor  shall  the  wliole  amount  of  such  bonds  exceed  the 
whole  amount  of  treasury  notes  bearing  seven  and  three-tenths  per 
cent,  interest  issued  under  said  act  (of  July  17,  1861). 

Act  February  12,  1862. 

Tliat  the  secretary  of  the  treasury,  in  addition  to  the  $50,000,000 
of  notes  payable  on  demand  of  denominations  not  less  than  five 
dollars,  authorized  by  the  acts  of  July  17  and  August  5,  1861,  is 
authorized  to  issue  like  notes  to  the  "amount  of  $i0,000,000 — said 
notes  shall  be  deemed  -part  of  the  loan  of  $250,000,000  authorized 
by  said  acts. 

Act  February  25,  1862. 

That  the  secretary  of  the  treasury  is  hereby  authorized  to  issue, 
on  the  credit  of  the  United  States,  one  hundred  and  fifty  millions  of 
dollars  of  United  States  notes,  not  bearing  interest,  payable  to  bearer, 
at  the  Treasury  of  the  United  States,  and  of  such  denominations  as 
he  may  deem  expedient,  not  less  than  five  dollars  each :  Provided, 
however.  That  fifty  millions  of  said  notes  shall  be  in  lieu  of  the 
demand  treasury  notes  authorized  to  be  issued  by  the  act  of  July 
seventeen,  eighteen  hundred  and  sixty-one;  which  said  demand  notes 
shall  be  taken  up  as  rapidly  as  practicable,  and  the  notes  herein  pro- 


170  LABOR    AND    FINANCE    REVOLUTION. 

vided  for  substituted  for  them:  A)id  provided  further.  That  the 
amount  of  the  two  kinds  of  notes  together  shall- at  no  time  exceed  the 
sum  of  one  hundred  and  fifty  millions  of  dollars,  and  such  notes 
herein  authorized  shall  be  receivable  in  paj'ment  of  all  taxes,  internal 
duties,  excises,  debts  and  demands  of  every  kind  due  to  the  United 
States,  except  duties  on  imports,  and  of  all  claims  and  demands 
against  the  United  States  of  every  kind  whatsoever,  except 'for 
interest  upon  bonds  and  notes,  which  shall  be  paid  in  coin,  and 
shall  also  be  lawful  money  and  a  legal  tender  in  payment  of  all 
debts,  public  and  private,  witliin  the  United  States,  except  duties  on 
imports  and  interest  as  aforesaid.  And  any  holders  of  said  United 
States  notes  depositing  any  sum  not  less  than  fifty  dollars,  or  some 
multiple  of  fifty  dollars,  with  the  treasurer  of  the  United  States,  or 
either  of  the  assistant  treasurers,  shall  receive  in  exchange  therelor 
duplicate  certificates  of  deposit,  one  of  which  may  be  transmitted  to 
the  secretary  of  the  treasury,  who  shall  thereupon  issue  to  the  holder 
an  equal  amount  of  bonds  of  the  United  States,  coupon  or  re.cistered, 
as  may  by  said  holder  be  desired,  bearins  interest  at  the  rate  of  six 
per  centum  per  annum,  payable  semi-nunually,  and  redeemable  at 
the  pleasure  of  the  United  States  after  five  years,  and  payable  twenty 
years  from  the  date  thereof.  And  such  United  States  notes  shall  be 
received  the  same  as  coin,  at  their  par  value,  in  payment  for  any 
loans  that  may  be  hereafter  sold  or  negotiated  by  the  secretary  of 
the  treasury,  and  may  be  re-issued  from  time  to  time  as  the  exi- 
gencies of  the  public  interest  shall  require. 

That  to  enable  the  secretary  to  fund  the  floating  debt  of  the 
United  States  he  be  authorized  to  issue,  on  the  credit  of  the  United 
States,  bonds  to  an  amount  not  exceeding  $500,000,000,  redeemable 
at  the  pleasure  of  the  United  States  after  five  years,  and  payable 
twenty  years  after  date,  bearing  interest  at  the  rate  of  six  per  cent, 
per  annum. 

Sinking  Fund  Act,  February  25,  1862. 

That  all  duties  on  imported  goods  shall  be  paid  in  coin,  or  in 
notes  payable  on  demand,  heretofore  authorized  to  be  issued  and  by 
law  receivable  in  payment  of  public  dues,  and  the  coin  so  paid  shall 
be  set  apart  as  a  special  fund  and  shall  be  applied  as  follows: 

First,  To  the  payment  in  coin  of  the  interest  on  the  bonds  and 
notes  of  the  United  States. 

Second,  To  the  purchase  or  payment  of  one  per  centum  of  the 
entire  debt  of  the  United  States  to  be  made  within  each  fiscal  year 
after  the  first  day  of  July,  1862,  which  is  to  be  set  apart  as  a  sinking 
fund,  and  the  interest  of  which  shall  in  like  manner  be  applied  to 
the  purchase  or  payment  of  the  public  debt  as  the  secretary  of  the 
treasury  shall  from  time  to  time  direct. 

Third,  The  residue  thereof  to  be  paid  into  the  treasury. 

Act  March  17,  1862. 

That  the  secretary  may  purchase  coin  with  any  of  the  bonds  or 
notes  of  the  United  States  authorized  by  law%  at  such  rates  and  upon 
such  terms  as  he  may  deem  most  advantageous  to  the  public  interest. 

(By  Sec.  2  of  this  act,  the  demand  notes  authorized  by  the  acts  of 


FINANCE    LEGISLATION.  171 

July  17,  1861,  and  February  12,  1862,  are  declared  lawful  money  and 
a  legal  tender,  same  as  the  treasury  notes  issued  under  act  of  Feb- 
ruary 25,  15)62.) 

Pacific  Railroad  Bonds,  Act  July  1,  1862. 

Sec.  5.  That  for  the  purposes  herein  mentioned  the  secretary  of 
the  treasury  shall,  upon  the  certificate  in  writing  of  said  commis- 
sioners of  the  completion  and  equipment  of  forty  consecutive  miles 
of  said  railroad  and  telegraph,  in  accordance  with  the  provisions  of 
this  act,  issue  to  said  company  bonds  of  the  United  States  of  one 
thousand  dollars  each,  payable  in  thirty  years  after  date,  bearing  six 
per  centum  per  annum  interest  (said  interest  payable  semi-annually), 
which  interest  may  be  paid  in  United  States  treasury  notes  or  any 
other  money  or  currency  which  the  United  States  have  or  shall 
declare  lawful  money  and  a  legal  tender,  to  the  amount  of  sixteen 
of  said  bonds  per  mile  for  such  section  of  forty  miles;  and  to  secure 
the  repayment  to  the  United  States,  as  hereinafter  provided,  of  the 
amount  of  said  bonds  so  issued  and  delivered  to  said  company, 
together  with  all  interest  therein  which  shall  have  been  paid  by  the 
United  States,  the  issue  of  said  bonds  and  delivery  lo  the  company 
shall  ipso  facto  constitute  a  first  mortgage  on  the  whole  line  of  the 
railroad  and  telegraph,  together  with  the  rolling  stock,  fixtures  and 
property  of  every  kind  and  description,  and  in  consideration  of  which 
said  bonds  may  be  issued ;  and  on  the  refusal  or  failure  of  said  com- 
pany to  redeem  said  Ijonds,  or  any  part  of  them,  when  required  so 
to  do  by  the  secretary  of  the  treasury,  in  accordance  with  the  provi- 
sions of  this  act,  the  said  road,  with  all  the  rights,  functions,  immu- 
nities and  appurtenances  thereutito  belonging,  and  also  all  1  mds 
granted  to  the  said  company  by  the  United  States,  which,  at  the 
time  of  said  default,  shall  remain  in  the  ownership  of  said  company, 
may  be.taken  possession  of  by  the  secretary  of  the  treasury,  for  the 
use  and  benefit  of  the  United  States:  Provided,  this  section  shall 
not  apply  ti>  that  part  of  any  road  now  constructed. 

Sec.  6.  That  the  grants  af  iresaid  are  made  upon  condition  that 
said  company  shall  pay  said  bonds  at  maturity,  and  shall  keep  said 
railroad  and  telegraph  line  in  repair  and  use,  and  shall  at  all  times 
transmit  dispatches  over  said  telegraph  line,  and  transport  mails, 
troops  and  munitions  of  war,  supplies  and  public  stores  upon  said 
railroad  for  the  Government,  whenever  required  to  do  so  by  any 
department  thereof,  and  that  the  Government  shall  at  all  times  have 
the  preference  in  the  use  of  the  same  for  all  the  purposes  aforesaid  (at 
fair  and  reasonable  rates  of  compensation,  not  to  exceed  the  amounts 
paid  by  private  parties  for  the  same  kind  of  service);  and  all  com- 
pensation for  services  rendered  for  the  Government  shall  be  applied 
to  tlie  payment  of  said  bonds  and  interest  until  the  whole  amount  is 
fully  paid.  Said  company  may  also  pay  the  United  States,  wholly 
or  in  part,  in  the  same  or  other  bonds,  treasury  notes,  or  other  evi- 
dences of  debt  against  the  United  States,  to  be  allowed  at  par;  and 
after  said  road  is  completed,  until  said  bonds  and  interest  are  paid, 
at  least  five  per  centum  of  the  net  earnings  of  said  road  shall  also  be 
annually  applied  to  the  payment  thereof. 


172  LABOR    AND    FINANCE    REVOLUTION. 

Act  July  11,  1862. 

Tliat  the  secretary  of  the  treasury  is  hereby  authorized  to  issue, 
in  additioa  to  the  amounts  heretofore  autliorized,  on  the  credit  of 
the  United  States,  one  hundred  and  fifty  millions  of  dollars  of  United 
States  notes,  not  bearing  interest,  payable  to  bearer  at  the  treasury 
of  the  United  States,  and  of  such  denominations  as  he  may  deem 
expedient:  Provided,  That  no  note  shall  be  issued  for  the  fractional 
part  of  a  dollar,  and  not  more  that  thirty-five  millions  shall  be  of 
lower  denominations  than  five  dollars;  and  such  notes  shall  be  re- 
ceivable in  payment  of  all  loans  made  to  the  United  States,  and  of 
all  taxes,  internal  duties,  excises,  debts  and  demands  of  every  kind 
due  to  the  United  States,  except  duties  on  imports  and  interest,  and 
of  all  claims  and  demands  against  the  United  States,  except  for  in- 
terest upon  bonds,  notes,  and  certificates  of  debt  or  deposit;  and  shall 
also  be  lawful  money  and  a  legal  tender  in  pa^-meut  of  all  debts, 
public  and  private,  within  the  United  States,  except  duties  on  imports 
and  interest,  as  aforesaid.  And  any  holder  of  said  United  States 
notes  depositing  any  sum  not  less  that  fifty  dollars,  or  some  multi|)le 
of  fifty  dollars,  witb  tlie  treasurer  of  the  United  States,  or  either  of  the 
assistant  treasurers,  shall  receive  in  exchange  therefor  duplicate  cer- 
tificates of  dep().-it,one  of  which  may  be  transmitted  to  the  secretary 
of  the  treasury,  who  shall  thereupon  issue  to  tlie  iiolder  an  equal 
amount  of  bonds  of  the  United  States,  coupon  or  registered,  us  may 
by  said  holder  be  desired,  bearing  interest  at  the  rate  of  six  per 
centum  per  annum,  payable  semi-annually,  and  redeemable  at  the 
pleasure  of  the  United  States  after  five  years,  and  payable  twenty 
years  from  the  date  thereof:  Provided,  howe»er.  That  any  notes  issued 
under  this  act  may  be  paid  in  coi^,  instead  of  being  received  in  ex- 
change for  certificates  of  deposit  as  above  specified  at  the  direction 
of  the  secretary  of  the  treasury.  And  the  secretary  of  tlie  treasury 
may  exchange  for  such  notes,  on  such  terms  as  he  "shall  think  most 
beneficial  to  the  public  interest,  any  bonds  of  the  United  States  bear- 
ing six  per  centum  interest,  and  redeemable  after  five  and  payable  in 
twenty  years,  which  liave  been  or  may  be  lawfully  issued  under  the 
provisions  of  any  existing  act;  may  reissue  the  notes  so  received  in 
exchange  ;  may  receive  and  cancel  any  notes  heretofore  lawfully 
issued  under  congress,  and  in  lieu  thereof  iss  le  an  equal  amount  in 
notes  such  as  are  authorized  by  this  act;  and  may  purchase,  at  rates 
not  exceeding  one-eighth  of  one  per  centum,  any  bonds  or  certificates 
of  debt  of  the  United  States  as  he  may  deem  advisable. 

Joint  Resolution  January  17,  1863. 

That  the  secretary  of  the  treasury  is  hereby  authorized,  if  required 
by  the  exigencies  of  the  public  service,  to  issue  on  the  credit  of  the 
United  States  the  sum  of  one  hundred  millions  of  dollars  of  United 
States  notes  in  such  form  as  he  may  deem  expedient,  not  bearing  in- 
terest,  payable  to  bearer  on  demand,  and  of  sucli  denominations,  not 
less  than  one  dollar,  as  he  may  prescribe,  which  notes  so  issued  shall 
be  lawful  money  and  a  legal  tender,  like  the  similar  notes  heretofore 
authorized,  in  payment  of  all  debts,  public  and  private,  within  the 
United  States,  except  duties  on  imports  and  interest  on  the  public 
debt. 


FINANCE    LEGISLATION.  173 

Act  March  S,  1S63. 

That  the  secretary  of  the  treasury  be,  and  is  hereby,  authorized  to 
borrow,  Irom  time  to  time,  on  the  credit  of  the  United  States,  a  sum 
not  exceeding  three  hundred  millions  of  dollars  for  the  current  fiscal 
year,  and  six  hundred  millions  for  the  next  fiscal  year,  and  to  issue 
theref(jr  coupon  or  registered  bunds,  payable  at  the  pleasure  of  the 
Government  after  such  periods  as  may  be  fixed  by  the  secretary,  not 
less  tlian  ten  nor  more  than  forty  years  from  date  in  coin,  and  of  such 
denominations,  not  less  than  filty  dollars,  as  he  may  deem  expedient, 
bearing  interest  at  a  rate  not  exceeding  six  per  centum  per  annum, 
payable  on  bonds  not  exceeding  one  hundred  dollars,  annually,  and 
on  all  others  semi-annually,  in  coin;  and  he  may  in  his  discretion, 
dispose  of  such  bonds  at  any  time,  upon  such  terms  as  he  may  deem 
most  advisable,  for  lawful  money  of  the  United  States,  or  for  any  of 
the  certificates  of  indebtedness  or  deposit  that  may  at  any  time  be 
unpaid,  or  for  any  of  the  treasury  notes  heretofore  issued  or  which 
may  be  issued  under  the  provisions  of  this  act.  And  all  the  bonds 
and  treasury  notes  issued  under  the  provisions  of  this  act  shall  be 
exempt  from  taxation  by  or  under  state  or  municipal  authority:  Pro- 
vided, That  there  shall  be  outstanding  of  bonds,  treasury  notes,  and 
United  States  notes,  at  any  time,  issued  under  the  provisions  of  this 
act,  no  greater  amount  altogether  than  the  sum  of  nine  hundred  mil- 
lions of  dollars. 

That  the  secretary  of  the  treasury  be,  and  he  is  hereby,  authorized 
to  issue,  on  the  credit  of  the  United  States,  four  hundred  millions  of 
dollars  in  treasury  notes,  payable  at  the  pleasure  of  the  United  States, 
or  at  such  time  or  times  not  exceeding  three  years  from  date  as  may 
be  found  most  beneficial  to  the  public  interests,  and  bearing  interest 
at  a  rate  not  exceeding  six  per  centum  per  annum,  payable  at  periods 
expressed  on  the  face  of  said  treasury  notes ;  and  tlie  interest  on  the 
said  treasury  notes  and  on  certificates  of  indebtedness  and  deposits 
hereafter  issued,  shall  be  paid  in  lawful  money.  The  treasury  notes 
thus  issued  shall  be  of  such  denominations  as  the  secretary  may 
direct,  not  less  than  ten  dollars,  and  may  be  disposed  of  on  the  best 
terms  that  can  be  obtained,  or  maybe  paid  to  any  creditor  of  the 
United  States  willing  to  receive  the  same  at  par.  And  said  treas- 
ury notes  may  be  made  a  legal  ^tender  to  the  same  extent  as  the  United 
States  notes,  for  their  face  value,  excluding  interest;  or  they  may  be 
made  exchangeable  under  regulations  prescribed  by  the  secretary  of 
the  treasury,  by  the  holder  thereof,  at  the  treasury  in  the  City  of 
Washington,  or  at  the  office  of  any  assistant  treasurer  or  depositary 
designated  for  that  purpose,  for  Uniled  States  notes  equal  in  amount 
to  the  treasury  notes  offered  for  exchange,  together  with  the  interest 
accrued  and  due  thereon,  at  the  date  of  interest  payment  next  pre- 
ceding such  exchange.  And  in  lieu  of  any  amount  of  said  treasury 
notes  thus  exchanged,  or  redeemed  or  paid  at  maturity,  the  secretary 
may  issue  an  equal  amount  of  other  treasury  notes;  and  the  treasury 
notes  so  exchanged,  redeemed  or  paid,  shall  be  cancelled  and  des- 
troyed as  the  secretary  may  direct.  In  order  to  secure  certain  and 
prompt  exchanges  of  the  United  States  notes  for  treasury  notes  when 
required  as  above  i)rovided,  the  secretary  shall  have  power  to  issue 
United  States  notes  to  the  amount  of  one  hundred^and  fifty  millions  of 


174  LABOR    AND    FINANCE    REVOLUTION. 

dollars,  which  may  be  used  if  necessaiy  for  such  exchanges;  but  no 
part  of  the  United  States  notes  authorized  by  ihis  secticjn  shall  be 
issued  for  or  applied  to  any  other  purposes  than  said  exchanges; 
and  whenever  any  amount  sliall  have  been  so  issued  and  applied,  the 
same  shall  be  replaced  as  soon  as  practicable  irom  the  sales  of  treas- 
ury notes  for  United  States  notes. 

That  the  secretary  of  the  treasury  be,  and  he  is  hereby,  authorized, 
if  required  by  the  exigencies  of  the  public  service,  for  the  payment 
of  the  army  and  navy,  and  other  creditors  of  the  Government,  to  issue 
to  the  credit  of  the  United  States  the  sum  of  one  hundred  and  fifty 
millions  of  dollars  of  United  States  notes,  including  the  amount  of 
such  notes  heretofore  authorized  by  tlie  joint  resolution  approved 
January  seventeen,  eighteen-hundred  and  sixty-three,  in  such  torm  as 
he  may  deem  expedient,  not  bearing  interest,  payable  to  bearer,  and 
of  such  denominations,  not  less  than  one  dollar,  as  he  may  prescribe, 
which  notes  so  issued  shall  be  lawful  money  and  a  legal  tender  in 
payment  of  all  debts,  public  and  private,  within  the  UiViteil  States, 
except  for  duties  on  imports  and  interest  on  the  public  debt;  ancl 
any  of  the  said  notes,  wlieii  returned  to  the  treasury,  may  be  reissueu 
from  time  to  time  as  the  exigencies  of  the  public  service  may  require. 
And  in  lieu  of  any  of  said  notes, or  other  United  States  notes,  returned 
to  the  treasurv,'and  cancelled  or  destroyed,  tliere  may  be  issued  equal 
amounts  of  United  States  notes,  such  as  are  authorized  by  this  act. 
And  so  much  of  the  act  to  authorize  the  issue  of  United  States  notes, 
and  for  other  purposes,  approved  February  twenfy-five,  eighteen  hun- 
dred and  sixty-two,  and  of  the  act  to  authorize  an  additional  issue  ot 
United  States  notes,  and  for  other  purposes,  approved  July  eleven, 
eighteen  hundred  and  sixtyMwo,  as  restricts  the  negotiation  of  ''onds 
to  market  value,  is  hereby  repealed.  And  the  holders  of  United 
States  notes,  issued  under  and  by  virtue  of  said  acts,  shall  present  the 
same  for  the  purpose  of  exchanging  the  same  for  bonds,  as  therein 
provided,  on  or  before  the  first  day  of  July,  eighteen  hundred  and 
sixty-three,  and  thereafter  the  right  so  to  exchange  the  same  shall 
cease  and  determine. 

That  in  lieu  of  postage  and  revenue  stamps  for  fractional  currency, 
and  of  fractional  notes,  commonly  called  postage  currency,  issued 
or  to  be  issued,  the  secretary  of  the  treasury  may  issue  fractional 
notes  of  like  amounts  in  such  form  as  he  may  deem  expedient,  anO. 
may  provide  for  the  engraving,  preparation  and  issue  thereof  in  the 
treasury  department  building.  And  all  such  notes  issued  shall  be 
exchangeable  by  the  assistant  treasurers  and  designated  depositaries 
for  United  States  notes,  in  suras  not  less  than  three  dollars,  and  shall 
be  receivable  for  postage  and  revenue  stamps,  and  also  in  payment  of 
any  dues  to  the  United  States  less  than  five  dollars,  except  dues  on  im- 
ports, and  shall  be  redeemed  on  presentation  at  the  treasury  of  the 
United  States  in  such  sums  and  under  such  regulations  as  the  secretary 
of  the  treasury  shall  prescribe  •  Provided,  That  the  whole  amount  of 
fractional  currency  issued,  including  postage  and  revenue  stamps 
issued  as  currency,  shall  not  exceed  fifty  millions  of  dollars. 

That  the  secretary  of  the  treasury  is  hereby  authorized  to  receive 
deposits  of  gold  coin  and  bullion  with  the  treasurer  or  any  assistant 
treasurer  ofl,he  United  States,  in  sums  not  less  than  twenty  dollars. 


it 

4. 


FINANCE    LEGISLATION.  175 

and  to  issue  certificates  therefor  in  denominations  of  not  less  tlian 
twenty  dollars  each,  corresponding  with  the  denominations  of  the 
United  States  notes.  The  coin  and  bullion  deposited  for  or  repre- 
sentiug  the  certificates  of  deposit  shall  be  retained  in  the  treasury  for 
the  payment  of  the  same  on  demand.  And  certificates  representing 
coin  in  the  treasury  may  be  issued  in  payment  of  interest  on  the  pub- 
lic debt,  which  certificates,  together  with  those  issued  for  coin  and 
bullion  deposited,  shall  not  at  any  time  exceed  twenty  per  centum 
beyond  the  amount  of  coin  and  bullion  in  the  treasury;  and  the  cer- 
tificates for  coin  or  bullion  in  the  treasury  shall  be  received  at  par 
in  payment  for  duties  on  imports. 

Act  March  3,  1S64. 

That  in  lieu  of  so  much  of  the  loan  authorized  by  the  act  of  March 
3,  1863,  the  secretary  of  the  treasury  be  and  is  hereby  authorized  to 
borrow,  on  the  credit  of  the  United  States,  not  exceeding  two  hun- 
dred millions  of  dollars  during  the  current  fiscal  year,  bearing  date 
March  first,  eighteen  hundred  and  sixty-four,  or  any  subsequent 
period,  redeemable  at  the  pleasure  of  the  Government  after  any 
period  not  less  than  five  years,  and  payable  at  any  period  not  more 
than  forty  years  from  date,  in  coin,  bearing  interest  not  exceeding 
six  per  centum  a  year — and  he  may  dispose  of  such  bonds  at  any 
time,  on  such  terms  as  he  may  deem  most  advisable,  for  lawful  money 
of  the  United  States,  or,  at  his  discretion,  for  treasury  notes,  certifi- 
cates of  indebtedness  or  certificates  of  deposit  issued  under  any  act 
of  Congress. 

Joint  Resolution  March  17, 1864. 

That  the  secretary  of  the  treasury  be  authorized  to  anticipate  the 
payment  of  interest  on  the  public  debt,  by  any  period  not  exceeding 
one  year,  from  time  to  time,  either  with  or  without  a  rebate  of 
interest  upon  the  coupons,  as  to  him  may  seem  expedient,  and  he  is 
hereby  authorized  to  dispose  of  any  gold*  in  the  treasury  of  the 
United  States  not  necessary  for  the  payment  of  interest  on  the  public 
debt. 

Act  June  30,  1864. 

That  the  secretary  of  the  treasury  be  authorized  to  borrow  four 
hundred  millions  of  dollars,  and  to  issue  bonds  of  the  United  States, 
redeemable  at  the  pleasure  of  the  Government  after  any  period  not 
less  than  five  nor  more  than  forty  years  from  date,  and  bear  an  annual 
interest  not  exceeding  six  per  centum,  payable  semi-annually  in  coin. 

The  secretary  of  the  treasury  may  issue  on  the  credit  of  the  United 
States,  and  in  lieu  of  an  equal  amount  of  bonds  authorized  by  the 
preceding  section,  and  as  a  part  of  said  loan,  not  exceeding  two  hun- 
dred millions  of  dollars,  in  treasury  notes  of  any  denomination  not 
less  than  ten  dollars,  payable  at  any  time  not  exceeding  three  ^-ears 
from  date,  or,  if  thought  more  expedient,  redeemable  at  any  time 
after  three  years  from  date,  and  bearing  interest  not  exceeding  the 
rate  of  seven  and  three-tenths  per  centum,  payable  in  lawful  money 

♦This  is  the  first  instancn  of  the  use  of  the  word  "  cold  "  instead  of  "  coin"  or 
"  gold  and  silver  "  in  any  of  the  laws  of  the  United  States  with  regard  to  money 
obligations  of  the  Government  issued  since  1860. 


176  LAliOK    AND    FINANCE    KEVOLUTION. 

at  maturity.  And  such  of  them  as  shall  be  made  payable,  principal 
and  interest,  at  maturity,  shall  be  a  legal  tender  to  the  same  extent  as 
United  States  notes,  for  their  face  value,  excluding  interest,  and  may 
be  paid  to  any  creditor  of  the  United  States  at  their  face  value,  ex- 
cluding interest,  or  to  any  creditor  willing  to  receive  them  at  par,  in- 
cluding interest. 

That  the  total  amount  of  bonds  and  treasury  notes  authorized  by 
the  first  and  second  sections  of  this  act  shall  not  exceed  four  hundred 
millions  of  dollars,  in  addition  to  the  amounts  heretofore  issued;  nnr 
shall  the  total  amounts  of  United  States  notes,  issued  or  to  be  issued, 
ever  exceed  four  hundred  millions  of  dollars,  and  such  adaitional 
sums,  not  exceedina;  titty  millions  of  dollars,  as  may  be  temporarily 
required  for  the  redemption  of  temporary  loan ;  nor  shall  any  treasury 
note  bearins;  interest,  issued  under  this  act,  be  a  legal  tender  in  pay- 
ment or  redemption  of  any  notes  issued  by  any  bank,  banking  asso- 
ciation, or  banker,  calculated  or  intended  to  circulate  as  money. 

The  secretary  of  the  treasury  may  issue  notes  of  tlie  fractions  of  a 
dollar  as  now  used  for  currency,  in  such  form,  with  such  inscriptions, 
and  with  such  safeguards  against  counterfeiting,  as  he  may  judge 
best;  but  the  whole  amount  of  all  descriptions  of  notes  or  stamps 
less  than  one  dollar  issued  as  currency,  shall  not  exceed  fifty  millions 
of  dollars. 

Amendment  to  Pacific  Railroad  Act,  July  2,  1864. 

That  section  five  of  said  act  be  so  modified  and  amended  that  the 
Union  Pacific  Railroad  Company,  the  Central  Pacific  Railroad  Com- 
pany, and  any  other  company  authorized  to  participate  in  the  con- 
struction of  said  road,  may,  on  tlie  completion  of  each  section  of  said 
road,  as  provided  in  this  act  and  the  act  to  which  this  act  is  an 
amendment,  issue  their  first  mortgage  bonds  on  their  respective  rail- 
road and  telegraph  lines  to  an  amount  not  exceeding  the  amount  of 
the  bonds  of  the  United  States,  and  of  even  tenor  aad  date,  time  of 
maturity,  rate  and  character  of  interest,  with  the  bonds  authorized  to 
be  issued  to  said  railroad  companies  respectively.  And  the  lien  of 
the  United  States  bonds  sliall  be  subordinate  to  that  of  the  bonds  of 
any  or  either  of  said  companies  hereby  authorized  to  be  issued  on 
their  respective  roads,  property  and  eciuipments,  except  as  to  the  pro- 
visions of  the  sixth  section  of  the  act  to  which  this  act  is  an  amend- 
ment, relating  to  the  transmission  of  dispatches  and  the  transportation 
of  mails,  troops,  munitions  of  war,  supplies  and  public  stores  for  the 
Government  of  the  United  States. 

Act  January  28,  1865. 

That  in  lieu  of  any  bonds  authorized  to  be  issued  by  the  first  section 
of  the  act  entitled  "A.n  act  to  provide  ways  and  means  for  the  support 
of  the  Government,"  approved  June  30, 1864,  that  may  remain  unsold 
at  the  date  of  this  act,  the  secretary  of  the  treasury  may  issue,  under 
the  authority  of  said  act,  treasury  notes  of  the  description  and  char- 
acter authorized  by  the  second  section  of  said  act-  Provided,  That 
the  whole  amount  of  bonds  authorized  as  aforesaid  and  treasury 
notes  issued  and  to  be  issued  in  lieu  thereof  shall  not  exceed  the  sum 
of  four  hundred  millions  of  dollars  ;*  and  such  treasury  notes  may  be 
disposed  of  for  lawful  money,  or  for  any  other  treasury  notes  or  cer- 


FINANCE    LEGISLATION.  177 

tificates  of  indebtedness  or  certificates  of  deposit  issued  under  any 
previous  act  of  Congress ;  and  sucli  notes  sliall  be  exempt  from  tax- 
ation by  or  under  State  or  municipal  autliority. 

Act  March  3,  1S65. 

Tliat  tlie  secretary  of  the  treasury  be,  and  lie  is  hereby,  authorized 
to  borrow,  from  time  to  time,  on  tlie  credit  of  the  United  States,  in 
addition  to  the  amounts  heretofore  authorized,  any  sums  not  exceed- 
ing, in  the  aggregate,  six  hundred  millions  of  dollars,  and  to  i<^sue 
therefor  bonds  or  treasury  notes  of  the  United  States  in  such  form 
as  he  may  prescribe;  and  so  much  thereof  as  may  be  issued  in  bonds 
shall  be  of  denominations  not  less  than  fifty  dollars,  and  may  be 
made  payable  at  any  period  not  more  than  forty  years  from  date  of 
issue,  or  may  be  made  redeemable,  at  the  pleasure  of  the  Government, 
at  or  after  any  period  not  less  than  five  years  nor  more  than  forty 
years  from  date,  or  may  be  made  redeemable  and  payable  as  afore- 
said, as  may  be  expressed  upon  tlieir  face ;  and  so  much  thereof  as 
may  be  issued  in  treasury  notes  may  be  made  controvertible  into  any 
bonds  authorized  by  this  act. 

Provided,  Tliat  the  rate  of  interest  on  any  such  bonds  or  treasury 
notes,  when  payable  in  coin,  shall  not  exceed  six  per  centum  per 
annum ;  and  when  not  payable  in  coin  shall  not  exceed  seven  and 
three-tenths  per  centum  per  annum. 

Provided,  That  nothing  herein  contained  shall  be  construed  as 
authorizing  the  issue  of  legal-tender  notes  in  any  form. 

Act  April  12,  1866. 

That  the  act  approved  March  3,  1865,  shall  be  extended  and  con- 
strued to  authorize  the  secretary  of  the  treasury,  at  his  discretion,  to 
receive  any  treasury  notes  or  other  obligations  issued  under  any  act 
of  Congress,  whether  bearing  interest  or  not,  in  exchange  for  any 
description  of  bonds  authorized  by  the  act  to  which  this  is  an  amend- 
ment; and  also  to  dispose  of  any  description  of  bonds  authorized  by 
said  act,  either  in  the  United  States  or  elsewhere,  to  such  an  amount, 
in  such  manner  and  at  such  rates  as  he  may  think  advisable,  for 
lawful  money  of  the  United  States  or  for  any  treasury  notes,  certifi- 
cates of  idebtedness  or  certificates  of  deposit,  or  other  representatives 
of  value  which  have  been  or  which  may  be  issued  under  any  act  of 
Congress,  the  proceeds  thereof  to  be  used  only  for  retiring  treasury 
notes  or  other  obligations  issued  under  any  act  of  Congress;  but 
nothing  herein  contained  shall  be  construed  to  auihorize  any  increase 
of  the  public  debt:  Provided,  That  of  the  United  States  notes  not 
more  than  ten  millions  of  dollars  may  be  retired  and  cancelled  within 
six  months  from  the  passage  of  this  act,  and  thereafter  not  more  than 
four  millions  of  dollars  in  any  one  month. 

Act  March  2,  1867. 

That  for  the  purpose  of  redeeming  and  retiring  any  compound- 
interest  notes  outstanding,  the  secretary  of  the  treasury  is  hereby 
authorized  and  directed  to  issue  temporary  loan  certificates  in  the 
manner  prescribed  by  sectioq  four  of  the  act  entitled  "An  act  to 
authorize  the  issue  of  United  States  notes  and  for  the  redemption  or 

12 


178  LABOR    AND    FINANCE    REVOLUTION. 

funding  thereof,  and  for  funding  the  floating  debt  of  the  United 
States."  approved  February  twenty-tiftb,  eighteen  hundred  and  sixty- 
two ;  bearing  interest  at  a  rate  not  exceeding  three  per  centum  per 
annum,  principal  and  interest  payable  in  lawful  money  on  demand ; 
and  said  certificates  of  temporary  loan  may  constitute  and  be  held,  by 
any  national  bank  holding  or  owning  the  same,  as  a  part  of  the 
reserve  provided  tor  in  sections  thirty-one  and  thirty-two  of  the  act 
entitled  "An  act  to  provide  a  national  currency,  secured  by  a  pledge 
of  United  States  bonds,  and  to  provide  for  the  circulation  and  re- 
demption thereof: "  Provided,  that  the  amount  of  such  certificates 
outstanding  at  any  time  shall  not  exceed  fifty  millions  of  dollars. 

Act  July  25,  1868. 

That  for  the  sole  purpose  of  redeeming  and  retiring  the  remainder 
of  the  compound-interest  notes  outstanding,  the  secretary  of  the 
treasury  is  authorized  to  issue  an  additional  amount  of  temporary 
loan  certificates  not  exceeding  twenty-five  millions  of  dollars,  said 
certificates  to  bear  three  per  cent,  interest,  payable  in  lawful  money. 

An  Act  to  strengthen  the  public  credit,  approved  March  18,  1869. 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of  the 
United  States  of  America,  in  Congress  assembled :  That  in  order  to 
remove  any  doubt  as  to  the  purpose  of  the  Government  to  discharge 
all  just  obligations  to  the  public  creditors,  and  to  settle  couflicting 
questions  and  interpretations  by  the  law  by  virtue  of  which  such 
obligations  have  been  contracted,  it  is  herein^  provided  and  declared 
that  the  faith  of  the  United  States  is  solemnlj'  pledged  to  the  pay- 
ment in  coin  or  its  equivalent  of  all  the  obligations  of  the  United 
States  not  bearing  interest,  known  as  the  United  States  notes,  and  of 
all  the  interest-bearing  obligations  of  the  United  States,  except  in 
cases  where  the  law  authorizing  the  issue  of  such  obligations  has 
expressly  provided  that  the  same  may  be  paid  in  lawful  money,  or 
other  currency  than  gold  and  silver.  But  none  of  said  interest-bear- 
ing obligations  not  already  due  shall  be  redeemed  or  paid  before 
maturity,  unless  at  such  time  United  States  notes  shall  be  converti- 
ble into  coin  at  the  option  of  the  holder,  or  unless  at  such  time  bonds 
of  the  United  States  bearing  a  lower  rate  of  interest  than  the  bonds 
to  be  redeemed  can  be  sold  at  par  in  coin.  And  the-  United  States 
also  solemnly  pledges  its  faith  to  make  provisions  at  the  earliest 
practicable  period  for  the  redemption  of  the  United  States  notes  in 
coin. 

Funding  Act,  July  14,  1870. 

That  the  secretary  of  the  treasury  is  hereby  authorized  to  issue  in 
a  sum  or  sums  not  exceeding  in  the  aggregate  two  hundred  millions 
of  dollars,  coupon  or  registered  bonds  of  the  United  States,  in  such 
forms  as  he  may  prescribe,  and  of  denominations  ot  fifty  dollars,  or 
some  multiple  of  that  sum,  redeemable  in  coin  of  the  present  stand- 
ard value,  at  the  pleasure  of  the  United  States,  after  ten  years  from 
the  date  of  their  issue,  and  bearing  interest,  payable  semi-annually 
in  such  coin,  at  the  rate  of  five  per  cent,  per  annum;  also  a  sum  or 
sums  not  exceeding  in  the  aggregate  three  hundred  millions  of  dollars 


FINANCE    LEGISLATION.  179 

of  like  bonds,  the  same  in  all  respects,  bat  payable  at  the  pleasure 
of  the  United  States,  after  fifteen  years  from  their  issue,  and  bearing 
interest  at  the  rate  of  four  and  a  half  per  cent,  per  annum;  also  a 
sum  or  sums  not  exceeding  in  the  aggregate  one  thousand  millions 
of  dollars  of  like  bonds,  the  same  in  ail  respects,  but  payable  at  the 
pleasure  of  the  United  States  after  thirty  years  from  liie  date  of 
their  issue,  and  bearing  interest  at  the  rate  of  four  per  cent,  per 
annum ;  all  of  which  said  several  classes  of  bonds  and  the  interest 
thereon  shall  be  exempt  from  the  payment  of  all  taxes  or  duties  of 
the  United  Stales,  as  well  as  from  taxation  in  any  form  b}'  or  under 
State,  municipal  or  local  authority;  and  the  said  bonds  shall  have 
set  forth  and  expressed  upon  their  face  the  above  specified  condi- 
tions, and  shall,  with  their  coupons,  be  made  payable  at  the  treasury 
of  the  United  States.  But  nothing  in  this  act,  or  in  any  other  law 
now  in  force,  shall  be  construed  to  authorize  any  increase  whatever 
of  the  bonded  debt  of  the  United  States. 

Tliat  the  secretary  of  tlie  treasury  is  hereby  authorized  to  sell  and 
dispose  of  any  of  the  bonds  issued  under  this  act,  at  not  less  tiian 
their  par  value  for  coin,  and  to  apply  the  proceeds  thereof  to  the 
redemption  of  any  of  the  bonds  of  the  United  States  outstanding, 
and  known  as  five-twenty  bonds,  at  their  par  value;  or  lie  may  ex- 
change the  same  fur  such  five-twenty  bonds,  par  for  par;  but  the 
bonds  hereby  authorized  shall  be  used  for  mi  other  purpose  whatso- 
ever. And  a  sum  not  exceeding  one-half  of  one  per  cent,  of  the 
bonds  herein  authorized  is  hereby  appropriated  to  pay  the  expense 
of  preparing,  issuing,  advertising  and  disposing  of  the  same. 

That  the  payment  of  any  of  the  bonds  hereby  authorized  after  the 
expiration  of  the  said  several  terms  of  ten,  fifteen  and  thirty  years, 
shall  be  made  in  amounts  to  be  determined  from  time  to  time  by  the 
secretary  of  the  treasury  at  his  discretion,  the  bonds  so  to  be  paid  to 
be  distinguished  and  described  by  the  dates  and  numbers,  beginnmg 
for  each  successive  payment  with  tlie  bonds  of  eacii  class  last  dated 
and  numbered,  of  the  time  of  which  intended  payment  or  redemp- 
tion the  secretary  of  the  treasury  shall  give  public  notice,  and  the 
interest  on  the  particular  bonds  so  selected  at  any  time  to  be  paid 
shall  cease  at  the  expiration  of  three  mouths  from  the  date  of  su  di 
notice. 

That  the  secretary  of  the  treasury  is  hereby  authorized,  with  any 
coin  in  the  treasury  of  the  United  States  which  he  may  lawfully 
apply  to  such  purpose,  or  which  may  be  derived  from  the  sale  of  any 
of  the  bonds,  the  issue  of  which  is  provided  for  in  this  act,  to  pay  at 
par  and  cancel  any  six  per  cent,  bonds  of  the  United  States  of  the 
kind  known  as  five-twenty  bonds,  which  have  beconie  or  shall  liere- 
after  become  redeemable  by  ihe  terms  of  their  issue.  But  the  par- 
ticular bonds  so  to  be  paid  and  cancelled  shall  in  all  cases  be  indi- 
cated and  specified  by  class,  date,  and  number,  in  the  order  of  their 
numbers  and  issue,  beginning  with  the  first  numbered  and  issued,  in 
public  notice  to  be  given  liy  the  secretary  of  the  treasury,  and  in 
three  months  after  the  date  of  such  public  notice  the  interest  on  the 
bonds  so  selected  and  advertised  to  be  paid  shall  cease. 

That  the  secretary  of  the  treasury  is  hereby  authorized,  at  any 
time  within  two  years  from  the  passage  of  this  act,  to  receive  gold 


ISU  LABOR    AND    FINANCE    REVOLUTION. 

coin  of  the  United  States  on  deposit  for  not  less  than  thirty  days,  in 
sums  of  not  less  than  one  hundred  dollars,  with  the  treasurer,  or  any 
assistant  treasurer  of  the  United  States  authorized  by  the  secretary 
of  the  treasury  to  receive  the  same,  who  shall  issue  therefor  certifi- 
cates of  deposit,  made  in  such  form  as  the  secretary  of  the  treasury 
shall  prescribe,  and  said  certificates  of  deposit  shall  bear  interest  at 
a  rate  not  exceeding  two  and  a  half  per  cent,  per  annum;  and  any 
amount  of  gold  coin  so  deposited  may  be  withdrawn  from  deposit 
at  any  time  after  thirty  days  from  the  date  of  deposit,  and  after 
ten  days'  notice  and  on  the  return  of  said  certificates-  Provided, 
That  the  interest  on  all  such  deposits  shall  cease  and  determine 
at  the  pleasure  of  the  secretary  of  the  treasury.  And  not  less  thaa 
twenty-five  per  cent,  of  the  coin  deposited  for  or  represented  by  said 
certificates  of  deposit  shah  be  retained  in  the  treasury  for  the  pay- 
ment of  said  certificates;  and  the  excess  bejond  twenty-five  per  cent, 
may  be  applied,  at  the  discretion  of  the  secretary  of  the  treasury,  to 
the  payment  or  redemption  of  such  outstanding  bonds  of  tlie  United 
States  h-^retofore  issued  and  known  as  the  five-twenty  bonds,  as  he 
may  designate  under  the  provisions  of  the  fourth  section  of  this  act; 
and  any  certificate  of  deposit  issued  as  aforesaid  may  be  received  at 
par,  with  the  interest  accrued  thereon,  in  payment  for  any  bonds 
authorized  to  be  issued  by  this  act. 

Act  January  20,  1871. 

That  the  amount  of  bonds  authorized  by  the  act  approved  July 
14,  1870,  entitled  "  An  act  to  authorize  the  refunding  of  the  national 
debt,"  to  be  issued  bearing  five  per  centum  interest  per  annum,  be^ 
and  the  same  is,  increased  to  five  hundred  millions  of  dollars,  and 
the  interest  of  any  portion  of  the  bonds  issued  under  said  act,  or  this 
act,  may,  at  the  direction  of  the  secretary  of  the  treasuiy,  be  made 
payable  quarter-yearly :  Provided,  however,  that  ih'is  act  shall  not  be 
construed  to  authorize  any  increase  of  the  total  amount  of  bonds  pro- 
vided for  by  the  act  to  which  this  act  is  an  amendment. 

Act  June  2,  1872. 

That  the  secretary  of  the  treasury  is  hereby  authorized  to  receive 
United  States  notes  on  deposit  witliout  interest  from  banic  associa- 
tions, and  to  issue  certificates  therefor.  The  certificates  issued  may 
be  held  and  counted  by  national  banks  as  part  of  their  reserve. 

That  nothing  contained  in  this  act  shall  be  construed  to  authorize 
any  expansion  or  contraction  of  the  currency;  and  the  United  States 
notes  for  which  such  certificates  are  issued,  or  other  United  States 
notes  of  like  amount,  shall  be  held  as  special  deposits  in  the  treasury 
and  used  only  for  the  redemption  of  such  certificates. 

Act  December  17,  1873. 

Tliat  for  the  purpose  of  redeeming  the  bonds  called  the  loan  of 
1858,  it  is  hereby  declared  to  be  the  pleasure  of  the  United  States  to 
pay  all  the  coupon  bonds  of  said  loan  on  the  first  day  of  January, 
1874.  That  the  secretary  of  the  treasury  may  issue  an  equal  amount 
at  par  of  principal  and  interest  of  five  per  cent,  bonds  of  the  funded 
loan  under  the  act  for  refunding  the  national  debt,  approved  Janu- 


FINANCE    LEGISLATION.  181 

aiy  20,  1871,  for  any  of  the  bonds  of  the  loan  of  1858,  which  the 
holders  thereof  may,  on  or  before  the  1st  of  February,  1874,  elect  to 
exchange. 

Specie  Resumption  Act  of  January  24,  1875. 

§  1.  That  the  secretary  of  the  treasury  is  hereby  authorized  and 
required,  as  rapidly  as  practicable,  to  cause  to  be  coined  at  the  mints 
of  the  United  States,  silver  coins  of  the  denominations  of  ten,  twenty- 
five  and  fifty  cents,  of  standard  value,  and  to  issue  them  in  redemp- 
tion of  an  equal  number  and  amount  of  fractional  currency  of  simi- 
lar denominations,  or,  at  his  discretion,  he  may  issue  such  silver 
coins  through  the  mints,  the  sub-treasuries,  public  depositories  and 
post-offices  of  the  United  States;  and  upon  such  issue  he  is  hereby 
authorized  and  required  to  redeem  an  equal  amount  of  such  fractional 
currency  until  the  whole  amount  of  such  fraciional  currency  out- 
standing shall  be  redeemed. 

§  2.  That  so  much  of  section  3524  of  tte  Revised  Statutes  of  the 
United  States  as  provides  for  a  charge  of  one-sixih  of  one  per  centum 
for  converting  standard  gold  bullion  iutu  coin  is  hereby  repealed,  and 
hereafter  no  charge  shall  be  made  for  that  service. 

i^  3.  That  section  5777  of  the  Revised  Statutes  of  Ihe  United 
States,  limiting  tlie  aggregate  amount  of  the  circulating  notes  of 
the  national  banking  associations,  be  and  is  hereby,  repealed,  and 
each  existing  banking  assocjetion  may  increase  its  circulating  notes 
in  accordance  with  the  existing  law,  without  respect  to  s  lid  aggre- 
gate limit;  and  new  bankina;  associations  maybe  organized  in'ac- 
cordance  witli  the  existing  law,  without  respect  to  the  aggregate 
limit;  and  the  provisions  of  the  law  for  the  withdrawal  and  redis- 
tribution of  national-hank  currency  among  the  several  States  and 
Territories  are  hereby  repealed;  and  whenever  and  so  often  as  cir- 
culating notes  shall  be  issued  to  any  such  banking  associat-ion,  so 
increasing  its  capital  or  circulating  notes,  or  so  newly  oreanized  as 
aforesaid,  it  shall  be  the  duty  of  the  secretary  of  the  treasury  to 
redeem  ilie  legal-tender  United  States  notes  in  excess  only  of  $300,- 
000,000  to  the  amount  of  eighty  per  centum  of  the  sum  of  national- 
bank  notes  so  issued  to  any  such  banking  association  as  afore^aid, 
and  to  continue  such  redemption  as  such  circulating  notes  are  issued 
until  there  shall  be  outstanding  the  sum  of  $300,000!o00  of  such  legal- 
tender  United  States  notes,  and  no  more.  And  on  and  after  the  1st 
day  of  January,  A.  D.  1879,  the  secretary  of  the  treasury  shall  redeem 
in  coin  the  United  Stales  legal-tender  notes  then  outstanding  on  iheir 
presentatron  for  redemption  at  the  office  of  the  assistant  treasurer  of 
the  United  States,  in  the  City  of  New  York,  in  sums  of  not  less  than 
f  50.  And  to  enable  the  secretary  of  the  treasury  to  prepare  and 
provide  for  the  redemption  in  this  act  authorized  or  required,  he  is 
authorized  to  use  ary  surplus  revenues  from  time  to  time  in  the 
treasury  not  otherwise  appropriated,  and  to  issue,  sell  and  dispose  of, 
at  not  less  than  par  in  coin,  either  of  the  description  of  bonds  of  the 
United  States  described  in  tiieact  of  Congress  approved  July  14,  1870, 
entitled  "An  act  to  authorize  ihe  refunding  of  the  national  debt," 
with  like  privileges  and  exemptions,  to  the  extent  necessary  to  carry 
this  act  into  effect,  and  to  use  the  proceeds  thereof  for  the  purposes 


182  LABOR    AXD    FINAXCE    REVOLUTION. 

aforesaid.     And   all   provisions  of  law  inconsistent  with  the   pro- 
visions of  this  act  are  hereby  repealed. 

Subsidiary  Silver  Coin  Law,  Joint  Resolution  of  Congress  July  13, 
1876. 

§  1.  That  the  secretary  of  the  treasury,  under  such  limits  and 
regulations  as  will  best  secure  a  just  and  fair  distribution  of  the  same 
through  the  country,  may  issue  the  silver  coin  at  auj-  time  in  the 
treasuiy,  to  an  amount  not  exceeding  $10,000,000,  in  exchange  for  an 
equal  amount  of  legal-tender  notes,  and  notes  so  received  in  exchange 
shall  be  kept  as  a  special  fund,  separate  and  apart  from  all  other 
money  in  the  treasury,  and  be  issued  only  upon  the  retirement  and 
destruction  of  a  like  sum  of  fractional  currency  received  at  the 
treasury  in  payment  of  dues  to  the  United  States,  and  said  fractional 
currency,  when  so  substituted,  shall  be  destroyed  and  held  as  part  of 
the  sinking  fund,  as  provided  in  the  act  approved  April  17,  1876. 

§  2.  That  the  trade  dollar  shall  not  hereafter  be  a  legal  tender, 
and  the  secretary  of  the  treasury  is  hereby  authorized  to  limit  from 
time  to  time  the  coinage  thereof  to  such  an  amount  as  he  may  deem 
sutficient  to  meet  the  export  demand  for  the  same. 

^  8.  That  in  addition  to  the  amount  of  subsidiary  silver  coin 
authorized  by  law  to  be  issued  in  redemption  of  the  fractional  cur- 
rency, it  shall  be  lawful  to  manufacture  at  the  several  mints,  and 
issue  through  the  treasury  and  its  several  offices,  such  coin  to  an 
amount  that,  including  the  amount  of  subsidiary  silver  coin  and  of 
fractional  currencv  outstanding,  shall  in  the  aggregate  not  exceed  at 
any  time  $50,000,000. 

g  4.  That  the  silver  bullion  required  for  the  purposes  of  this  act 
shall  be  purchased  from  time  to  time  at  the  market  rate  by  the  sec- 
retary of  the  treasuiy  with  any  money  in  the  treasury  not  otherwise 
appropriated,  but  no  purchase  of  bullion  shall  be  made  under  this 
resolution  when  the  market  rate  for  the  same  shall  be  such  as  will 
not  admit  of  the  coinage  and  issue  as  herein  provided  wiihout  loss 
to  the  treasury,  and  any  gain  or  seigniorage  arising  from  this  coin- 
age shall  be  accounted  for  and  paid  into  the  treasury  as  provided 
under  existini^  laws  relative  to  subsidiary  coinage,  provided  that  the 
amount  of  money  at  any  time  invested  in  such  silver  bullion,  exclu- 
sive  of  such  resulting  coin,  shall  not  exceed  $200,000. 


CHAPTER  XIII. 

THE    BOND    AGE. 

The  world  has  passed  through  several  periods  called 
"Ages,"  each  characterized  by  some  important  feature 
of  the  time. 

Thus,  we  had  the  Stone  Age,  when  stone  was  not  only 
used  as  tools  for  the  husbandman,  weapons  for  the  w-ar- 
rior,  but  for  tablets  on  which  the  events  of  the  period 
and  its  literature  were  inscribed.  Passing  from  this 
over  to  the  Iron  Age,  the  Bronze  Age,  the  Dark  Age, 
and  the  Golden  Age,  we  find  ourselves  living  in  the 
Bond  Age.  This  is  characterized  by  its  enormous  infla- 
tion of  credits.  Civilization,  the  increased  facilities  for 
travel  and  transportation,  and  the  enlarged  diversity  of 
the  wants  of  the  period,  have  greatly  augmented  the 
demands  for  the  exchange  medium,  while  the  precious 
metals,  "  the  money  of  the  world,"  are  being  exhausted, 
their  supply  diminishing  and  their  cost  of  production 
increasing.  So  urgent  have  been  the  increasing  de- 
mands for  an  enlarged  volume  of  exchange  medium, 
that  private,  corporate,  municipal  and  national  credits 
have  been  substituted  for  coin,  to  an  extent  never  before 
known  in  the  history  of  the  world. 

Within  the  last  twenty  years  the  indebtedness  of  the 
world  has  quadrupled.  It  constitutes  a  monument  ter- 
rible to  contemplate. 

The  national,  railroad  and  municipal  debt  of  Europe 
and  North  America  are  estimated  as  follows: 

183 


184:  LABOR    AND    FINANCE   REVOLUTION. 

National  debts $23,400,000,000 

Railroad   debts.. 5,000.000,000 

State  and  municipal  debts 5,600,000,000 

Total. 134,000,000,000 

The  individual,  and  other  corporate  indebtedness  will 
exceed  the  above  three  fold,  making  the  interest-bearing 
burden  of  Europe  and  America  not  less  than  a  hundred 
and  fifty  thousand  million. 

That  of  the  United  States  is  appalling.  General  A.  J. 
Warner,  of  Ohio,  has  published  a  carefully  prepared 
statement  showing  the  increase  of  the  municipal  indebt- 
edness from  1866  to  1876. 

His  figures,  giving  the  condition  of  130  cities,  show 
that  during  these  ten  years  their  average  debt  has  in- 
creased 200  per  cent.;  taxation,  83  per  cent.;  valuation, 
75  per  cent.;  population,  only  33  per  cent. 

That  the  indebtedness  of  eleven  States,  to  wit.:  New 
York,  Massachusetts,  Illinois,  Ohio,  Wisconsin,  Min- 
nesota, Kansas,  Missouri,  Connecticut,  Georgia  and 
Kliode  Island,  has  increased  from  $286,179,060  in  1870 
to  $546,289,528  in  1878. 

That  while  the  debt  and  taxes  of  these  states  have 
doubled,  the  increase  in  the  value  of  property  has  been 
slight,  being  from  $7,172,148,175  in  1870  to  $7,333,696,- 
515  in  1878.  The  local  or  municipal  indebtedness  of  the 
United  States  has  incrersed  from  $850,000,000  in  1870 
to  $1,051,206,112  in  1878. 

In  1866  the  as^cyreficate  State  debt  of  the  United  States 
was  $390,000,000  and  now  eleven  States  owe  nearly 
$550,000,000. 

The  Westminster  Review  for  January,  1876,  estimated 
that  the  national  debts  of  the  world  then  aggregated 
£4,598,000,000,  or  $22,990,000,000. 

Our  national  debt  is  about  $2,000,000,000. 


THE    BOND    AGE.  185 

Some  other  public  and  corporate  debts  have  been  com- 
puted by  careful  authorities  as  follows: 

States $390,000,000 

Cities,  towns  and  counties 850,000,000 

Railroads 2,459,000,000 

Canals 105,000,000 

Total $3,804,000,000 

The  figures  for  railroads  are  taken  from  Poor's  Man- 
ual, 1876-'77.  Of  debts  of  manufacturing,  mining,  and 
other  companies,  no  estimates  have  ever  been  attempted. 

Of  another  form  of  permanent  debt  in  this  country, 
of  mortgages  upon  real  estate,  it  can  only  be  said  that  it 
is  exceedingly  great. 

The  permanent  investments  of  the  national,  State,  and 
savings  banks,  insurance  companies,  and  trust  companies 
of  New  York  City  amounted  at  the  commencement  of 
the  present  year  to  about  $500,000,000.  These  invest- 
ments include  $205,000,000  in  real  estate  mortgages. 
According  to  the  most  recent  returns  from  savings 
banks  which  are  accessible,  those  in  the  six  New  Eng- 
land States,  having  $438,000,000  in  deposits,  had  in- 
vested $228,000,000,  or  rather  more  than  one-half,  in 
real  estate  mortgages;  those  in  the  State  of  New  York, 
having  $316,677,000  in  deposits,  had  invested  $116,154,- 
000  in  the  same  way;  and  of  those  in  New  Jersey,  45 
per  cent,  of  the  deposits  are  so  invested. 

It  may  be  fairly  inferred  from  these  statements  that 
the  aggregate  value  of  real  estate  mortgages  held  by 
monied  institutions  is  very  large.  Tlie  value  of  tliose 
held  by  individuals  must  be  still  larger.  The  loans  and 
discounts  of  the  national  banks  October  2,  1876,  were 
$927,000,000.  In  November,  1875,  the  capital  of  State 
and  private  banks  was  $209,000,000,  not  reckoning 
a  large  surplus,  and  $487,000,000  of  deposits,  and  the 


186  LABOR    AND    FINANCE    REVOLUTION. 

savings  banks  had  $884,000,000  of  deposits.  Nearly  tlie 
whole  of  this  vast  aggregate  must  have  been  employed 
in  loans  of  some  kind.  A  considerable  proportion  of 
the  farms  in  the  West,  especially  in  the  newer  States, 
are  known  to  be  mortgaged.  Of  the  630,099  traders 
and  manufacturers  on  the  book  of  the  mercantile  agency 
of  Dunn,  Barlow  &  Co.,  in  1876,  9,022  failed,  with  aver- 
age liabilities  of  ^21,020.  If  that  is  assumed  to  be  the 
average  liability  of  the  whole  630,099,  the  aggregate 
liability  would  be  $13,244,000,000.  Those  who  think 
that  the  failures  sliould  be  ascribed,  not  to  a  relative  de- 
ficiency of  assets,  but  to  an  excess  of  .debts  above  the 
average,  will  reduce  this  estimate.  But  it  is  also  to  be 
taken  into  account  that  the  books  of  this  agency  do  not 
contain  the  names  of  all  the  persons  described  as  traders 
and  manufacturers,  nor  of  a  vast  number  not  described 
as  such  that  are  large  operators  and  debtors. 

There  are  other  forms  of  debt  in  this  country,  which 
consist  of  the  rents  reserved  on  long  leases  of  either 
land  and  buildings,  or  land  alone  to  be  built  upon  by 
the  lessees.  Tiie  amount  of  this  kind  of  indebtedness 
in  the  larger  cities  is  enormous,  and  the  effect  upon  it  of 
a  shrinking  money  is  especially  ruinous.  The  prostra- 
tion of  business,  which  destroys  or  greatly  reduces  the 
value  of  buildino-s  hired  for  commercial  or  manufactur- 
ing  purposes,  does  not  affect  the  right  of  the  landlord 
to  exact  in  full  the  stipulated  rent.  The  source  from 
which  it  was  expected  to  be  paid  may  be  dried  up,  but 
the  liability  to  pay  it  remains  undiminished.  Indebt- 
edness under  long  leases  figures  largely  in  the  lists  of 
debts  scheduled  in  bankrupt  courts,  and  largely  also 
among  the  losses  of  those  who  have  so  far  managed  to 
keep  out  of  such  courts. 


THE    BOND    AGE.  187 

Poor's  Manual  states  the  share-capital  of  the  railroads 
at  $2,198,000,000,  and  their  debts  at  $2,459,000,000 
being  a  j^roportion  of  share-capital  to  debt  of  eighty- 
nine  to  one  hnndred.  This  shows  a  considerable  excess 
of  debt  over  capital  stock.  Tlie  financial  condition  of 
the  railroads  illustrates  the  condition  of  a  large  propor- 
tion of  the  corporate  and  individual  property  in  the 
United  States.  The  country  is  new  and  unsurpassed  in 
natural  resources,  the  population  venturesome,  ingenious 
and  industrious,  and  enterprises  of  all  kinds,  from  the 
greatest  to  the  smallest,  are  undertaken  by  corporations 
and  individuals  on  small  capital.  It  is  considered  pru- 
dent for  companies  or  individuals  to  undertake  opera- 
tions with  only  means  enough  of  their  own  to  constitute 
a  security  for  loans  wherewith  to  complete  them.  This 
view  of  what  is  prudent  may  or  may  not  be  well  taken, 
but  it  is  natural  to  a  young  and  progressive  people.  It 
has  made  the  American  economical  system  one  vast  net- 
work of  debts  and  credits,  and  of  long  debts  and  long 
credits. 


CHAPTER  XIV. 


TABLES. 


WHAT    THE    BONDS    COST    SHYLOCK,  AND    HIS    PROFITS. 

The  Shylqcks  of  the  gold  exchange  for  years  kept 
gold  up,  that  they  might  buy  greenbacks  cheap,  to  in- 
vest in  bonds  at  par,  and  below  is  the  result,  showing 
the  year,  the  amount  of  greenbacks  exchanged  for  bonds 
and  the  amount  in  gold  the  greenbacks  were  purchased 
for: 


Tear. 

Bonds. 

Cost  in  gold. 

la  1862  

$60,982,450 
160,987,550 
381,292,250 
279,646,150 
124,914,400 
421,469,550 
425,443.800 

$44,030  649 

In  1863 

101,890,850 

In  1864 

189,697,636 

In  1865 

208  214,090 

In  1866 

88,591,773 

In  1867 

303,215,303 

In  1868 

312  826,32.3 

Total... 

$1,854,736,150 

$1,248,466,624 

Here  is  a  net  profit  of $606,269,526 

Add  interest  since. 1,430,000,000 

Harvest  for  eleven  years $2,036,269,526 

The  above  figures  are  taken  from  the  public  record 
and  may  be  relied  upon.  The  bondholders  have  re- 
ceived back  more  tlian  twice  the  value  thev  loaned,  and 
still  hold  the  bonds  to  draw  more  every  year,  until  they 
mature,  when  they  expect  to  receiv^e  their  face  in  gold, 
or  keep  the  blister  drawing  until  it  is  paid. 

188 


TABLES. 


189 


Showing  the  values  in  United  States  money  of  the 
pure  gold  and  silver  representing  respectively,  the  mon- 
etary units  and  standard  coins  of  foreign  countries,  Jan- 
uary 1, 1876. 

Treasury  Department,  Washington,  D.  C,  Jan.  1,  1876. 
The  estimate  of  values  contained  in  the  following  talle  has  been 
made  by  the  Director  of  the  Mint,  and  is  hereby  proclaimed  in  com- 
pliance with  the  provisions  of  law  : 


Country- 


Monetary  Unit. 


Austria .. 
Belgium . 


Florin 
Franc  . 


Bolivia  .. 

Brazil 

Brit.  Possessions 

in  N.  America. 

Bogota 

Central  America. 

Chili 

Denmark 

Ecuador 

Egypt 

France 


Dollar - 

Millreis  of  1,000  reis. 

Dollar 

Peso 

Dollar 


Great  Britain 


Greece - 

German  Empire. 

Japan 

India 

Italy 

Liberia 

Mexico 


Netherlands  ... 

Norway 

Peru 

Portugal 

Russia 

Sandwich  Islands 


Spain 

Sweden 

Switzerland. 

Tripoli 

Tunis 


Peso 

Crown 

Dollar 

Pound  of  100  piasters 

Franc 


Pound  sterling. 


Standard. 


Silver 

Gold  and 

silver.. 
Gold  and 

silver.. 
Gold 


Viilue     m 
U.    S. 
Money. 


Gold 

Gold 

Silver 

Gold 


Gold 

Silver.... 

Gold 

Gold  and 

silver 

Gold... 


Drachma 

Mark 

Yeu 

Rupee  of  16  annas  . 

Lira 

Dollar 

Dollar.  — X 

Florin 

Crown 

Dollar 

.MiUreis  of  1,000  reis 
Roubel  of  100  copecs 
Dollar 

Peseta  of  100  centimes 

Crown 

Franc 


Gold  and 
Silver.. 

Gold 

Gold 

Silver 

Gold  and 

Silver.. 

Gold... 


Turkey 

United    States  of 
Colombia 


Mahbub  of  20  piasters 
Piaster  of  16  caroubs. 

Piaster 

Peso 


Silver.. 

Gold  and 
Sliver 

Gold... 

Silver.. 

Gold... 

Silver.. 

Gold 

Go'd  and 
Silver. 

Gold 

Gold  and 
Silver.. 

Silver 

Silver 

Gold 

Silver..-. 


.45.3 
.19.3 

.96.5 
54.5 

$1.00 

•96.5 
.91.8 

.91.2 

.26.8 

.91.8 

4.97.4 

.19.3 

.19.3 

.23.8 
.99.7 
.43.6 

.19.3 

1.00 

.99.8 

.38.5 

.26.8 
.91.8 
1.08 

.73.4 
1.00 

.19.3 

.26.8 
.19.3 

.82.9 
.11.8 

.04.3 

.91.8 


Standard  Coins. 


F4orin. 

5, 10  and  20  francs. 

Escudo,    %    bolivar 

and  bolivar. 
None. 


Dollar. 

Condor,  doubloon 

and  escudo. 
10  and  20  crowns. 
Dollar.  (ters. 

5, 10,  25  and  50  pias- 

5, 10  and  20  francs. 

J^  sovereign  and 

sovereign. 
5,  10.  2(1,  50  and  100 

drachrpas. 
.'i,  10  and  20  marks. 

1,  2,  5, 10and20yen. 

5,  10,  20,  50  and  100' 
lire. 

Peso  or  dollar,  5, 10, 

25  and  50  centavo. 

Fiorin;   10  guldens, 

gold,  $4.01.9) 
10  and  20  crowns. 

2,  5  and  10  millreis. 
%,  14  and  1  rouble. 

5,  10,  20,  50  and  100 

pesetas. 
10  and  20  crowns. 

5, 10  and  20  francs. 


25.  50,  100,  250  and; 
500  piasters. 


B.  H.  BRISTOW,  Secretary  of  the  Treasury. 


190 


LABOR   AND    FINANCE    REVOLUTION. 


MONTHLY   RANGE    OF   THE    GOLD    PREMIUM    FOR     14    YEARS. 


The   following  table   shows  the 
prices  of   gold  at  New  York,  for 


lowest   and   hio-hest 
each  month  durino; 
fourteen  years.     The  left-handed  column  of  each  year 
shows  the  lowest  price,  and  the  right-hand  column  the 


highest. 


CO 

as 

CO 

Ci  ^  1-1  O  O  ^  LI  O  o  o  c-  ?o 

r^  -c/fxi  Hx  ccH  ^+0  5*0  H-*  H^^  '"♦»  =:*''  -^  ^^ 
I005C-C-05C10CO-^COO»Ttl 
CO  Ct  CO  CO-  ?2  00  -^  -n*  -^  CO  01  CO 

00 

T-H 

Hx  -icj  -5*0  t-HcD  Hx  icf*  xH«  5:100  itix  «)x  -H"  Hod 

t-ooi-iooQOOov:!.';.—  t- 
co-TiTtiTrcocO'^Tt'-rfTtHrtico 

a(^  5:+x  irt^  t-ix  5:ix  sc^x  Hx        -f.^  '-x 

CJt-coo^i-^cr^rci-^st-co 

oococococococico-^^coco 

to 
o 

CO 
1-^ 

1.-JX  ofto  -^;-i  H^  -i?»  sy.?  ccW"  H"*  Hx  :CfX  uttx  xH* 
TTOtSCl—t-LOCit-TfCO^ 

-^rticoci-^ooio-rfiireTti'^ 

K-f  Hx               -Hii-tx,        -fji  ^4  -fN  -*)  ^.t 
OlOLOlfflOt^lr-OCOlCt---^ 

coco<NoicJco'*-*Tt'-^o:co 

i6 

CO 

GO 

l-H 

^^1  kH-                H^  •':fx  H?>  ^-fx                Kf*  XW 

Tf  0  -H  O'  10  c-  -.r.  00  0  CI  ao  0 

CO-—  OCC-^-*iTf<-^Tj<T:J<-^-5f< 

(M-CIC?    —    -H^-H    —    —    .-,,-,,-1 

-*5^  srtx  .-fx        .cfx  xl-j'         .fifx  ideD        --tr.  -♦?» 
t-OCOTfl-lOli^JOl-JW-^lO-rtl 
O5C5Tt<Tt<CQCOCi0-*-<i<Tt<-^-^ 

CO 

0— 'cit-O'-iicwocio-* 

CO«5000C5>CCOO»OC>CS-r 
-.<  T-i  -.-H  ^  T-H  C>?  OJ  CQ  CO  101  0»  05 

vHC-O55O00C5(M-»-'lCC5OS^ 

1862.         1863. 

ocH*  -*?^  sH"               *^x         xH  -ix  «|.t<        0^ 

oc-irtOsiocoicaico^Tj'o"! 

ittt-l:-IO»C-*Tti<0J-*lCl«lO 

-*>  -*'  -H  -»x        ojx 

»**-*'-+*  -te  -Ri  -K  H*               H-f 
>C-^C}IOJ-^C50rff'*t-CO-H 
000000  CJ^CQCOCCCO 

.  ■   ^-tX  ^X  -i-TJ  ,.4X  -t5>            ^^  --(« 

nj5>>— ''-i<0}C005(N50l?»OVO 

January  

February  

March 

April 

May 

June 

July 

August 

September 

October. 

November 

December 

in 

00 

1— 1 

5*0  K((X            -*?!  KtX  -t?)  H*  <**  5*C  ^JI  5*0  Hni 

COiCt-100£-l>rfC-£-ttlO 

srH*  H-*  5Ctx                  H-*  55^*  ''-tX'  -♦<).  -*ri  r^X  lO^X 
■rHCO-^^mOi— ■OJCC'^-^O} 

T-l 

-♦5>            «-.)XKtX-4,,+*H0D-(,H*5*XMB)HTf 

OJCOCOtt^OOOIOOOOOJIO} 

-tX  «*»  -ft  X*.)-  c-iX  -»5)             -<^  5*0  5CH-             -^ 

Ot— ^i— T— OCxc5;::ctOO 

.-Ht— ^r-(T-H^H■^HOOOOT-^^- 

CO 

co 

r+*  -+D  -|M  -PC  «*0  H*  5-^'  H.*  -*X  -(^.  -(51  c(x 

Tt<100005COCO»00'—  OtOJ 

1— '    i-H    tH    t— *    1-^    1— <    T— t    .— <    ^—    T— 1    T— <    1— 

<|ao  Hx  i/*D  sew  -fi^    *           K^  iSx  -n-x  -fX  Ktx 
T-iCQTfCO«)OL'r'^Ot~:;5CO 
^rt_rtT-i.-H^,-.,-HOOO 

(OJ 

I- 

00 

T— 1 

r^          -t5J  -f*  5*0  rj-*  Hv  -^x  -*x  -tx  H^  -t51 
0  T-'  0  CO  Tp  "^  4C  i-O  iC  iC  "^  CO 

.^  -«N  xH  Hoc  -*x         -r5'  -*x  5:(.t  -fr*  5*d  ;*o 
CO  C5  C5  C5  C^  CO  CO  <0i  OJ  CI  1-1  T— 

OOOOt--*— It— Ii-HtHt-I^-i-H 
.— (    1— <    .— 1    1—1    .--•    .— <    T— '    ^^    1— <    r-H    T-H    .— 4 

00 

Hf-(.f.<*0XH'r+*-tX«tX-+»5*C             i5:tXS*0 

T^  01  •^  1-1  Ci  00  CO  CO  lO  »o  OJ  0 

-♦sixH'+o-*"      .a:|.)csH'<*X5:H'-t5i5*o5*o 
OOOOi— It—  i-i-hOJt-iOOO 
t-it-Ht-It-It-It— 1t-(t-ht-Ht— ii-lO 

0 

.-f* -t5J  5*0  0*X -P<  XH  !**             «Ml-H.Hl5<5*0 

CO— '?0iC10-*C>C'1»C0-^-^ 
OC>}-HT-iT-l-rt<NCQ^T-.— 'T-l 

«*o        ,^„-t5<;:H't4x-tX5C|Ti.xW-*x        -f* 
OSICOt-icOOi-i-^CJi-iOO 

05 

0 

CO 

T-H 

3**  -♦x  -»?■  xhf  scW  .otx  t-(x  -HX  -p.  =«•  xw 
«C00C^?Tf^O{— t-C>}T-'iX'-^ 

cocococo-^coeocoooocjc^f 

<^  C~fX  H.+  K*X  -tX                       HtJ.  Xt*  -tX'  -♦X  H^ 

■*00'-'*<t--*~000-HC5 
COCOCOCOCOCOCOCOCO(?J(0}^ 

II 1      1      1      1      1 

1       t       1       1       1       1       1       ••       1       *       1 
111111111)11 
1       I      1       1       I       1       1       t      I       t       1       1 

;    '     '  u    '  1-  . ' 

TABI,ES. 


191 


qooa  Aaaom  sb  laaj 
-xa  i(nB  oj  gn!J8[ 
-noaio  jqoa  jnatuiija 
-AOf)  papunjnn  JO  pas 
sajOM    JiuBg  jo    ib^oj. 


ooc 

c:  o  c 
oo< 


C-.  —  1 


SOO 

>  oo 

J.O  o 
o  oc 


c  if; 


00  m  I 
o  —  « 

:  X  —  I 


X'  o . 

'i-H  CO  : 
iTi  o  : 
*OQC  c 


-woo;  Tf(Ne!050iNiffl©'<!j< 

-  i-  O:  —  i-  C;  i  -  O  JJ  X  C(  M  ■* 

.    ^^        •■  '        '  ^^        r       r        r        r        r        r        r 

roij.'^ciTj'C:*— T^XQOcooc* 

-  3:  «  «  •«■  t;  C-.  «  I-  o  «  :r.  o 

i  i-  cTc'^'cc  x'ai'xirr^'t-Tco 
;  — ;  in-T  «  J?  r:  1- t- «  {»  i- oD 

^  X  c-  I-  I-  t>  L-  L-  i-  t-  50  O  CO 


o  ; 


^  >. 


■sjjaBa  ajBjg 


o  oo 
o  o  o 
o  oo. 

oTt!  x' 

X  lO  rr 

<^  a>^i- 

Tf  tc  lO  ■" 
ox  OJ  • 

«  — «c 


o  o 

cf  X  ; 

t'  c5  c 


oo 

oo 

o  o 


5  CO  t- 

jos  o 


o  oo 

o  o  — 
_  o  c_^ ", 

r  in  CJ  ^' 

)  o  a-,  i- 

.'irj'co'oo' 

o  xro 

CJ  r-.  U 


I  »ft  oi  CO  c:  c^  O  00  :c '^^^  ' 
<  »n  c.  ^^  :o  ai  o  fo  c^  IT  '-^  '^ 
1  <-■  ■»  o  ;c  c;  X  »n  «  ■^^  CI  •-' 

• -^^t- t-«,o  GO  »f:  s  —  ^ 

I  in  ;o  CO '1 5*'cj  i-Ti-^S'^  5- 

I  ^  ' 


9J[aBa;  [BnoiiB^T 


•^ouajjtio  lBaoi;oBJ^ 


^  CO  iO  c* 


o  ~» 1-':  ■ 

cr.  c:  or  ' 
CO  i-oi  ^ 


!06  0» 


—  '^  CO 

—  GC  ^ 


O*  -T  QO 


5  CI  O  CO  I 

3  ys  ??  Oi  I 

L-  C»  O  C 


r  CO  CO  c; 

>  05  TT  CO 
)0  c  0* 


O  OJ  Ol 

O  *T  CO 


^  ^  n; 

■rp  i-iQO 

o  »o  i-« 


to  C^  *— I 

<c  ^  a: 


2-  2;  o»  ^ 
o  j  ?*  o*  ^ 


;   I-  TT  t-- 

r  ^  OJCO 

:  CO  CO  CO 


rr  00  G 

—  OS 


1—  i-  -ro 

Ol  O  00 


l-*^  CO 

CJ  —  I- 

O  ^  00 


■  -rr  in  tT. 

:  I-  CO  X: 

;^ac  xco^ 

'oj'iocT 

00  lO  3'. 

^.  a;  It 


»-;  —  »n 

c:  o>  O: 

r:  ^-  ^ 

—  CJ  ^■ 

c^  ^  ^ 


■  mojTT 

'  "^  -^  CO 


8  a:  O  C^        -?   CO  *  o  cc  --c  t-  0»  t-  — .  CO  -^  o 
QC  {.'  O  X!  OJ  OJ  CO  irt  C:.  w  X:  CO  '00  Q  CO  1-.  T-« 
O  iC  tr^irO  CO  O  I- t^^O'  i-'^OJ^C:  l-  X  5j  CO  C  O 

o'l'oTo '-^ot''—'^':'x'--c  :y^cr.  x'^ctT-^i-T^' 

tc  a:  uo  ;c  o  cr.  Tf  oi  c;'  c:  00  i-  t-  TT-  CO  -.3  X  00 
mc-oii— 'CDOt-''— I"—  —  »-iO_oqOooi^S):o 

OrH  T-TcO  O  r-T^O  X;  '^X  oo  '^  a  lO  cT  cT  "^  co 

m  CO  CO  CO  o  I  -  i-o  L.O  L*;  iC  1.0  »o  CO  I-  -^  lO  -r  ^ 

i-»COtJ"tPt}<cOCOCOCOCCCOCOCOCOCOcOC^CO 


UBSK  H0B9  X  ^[nf 


.  o  o  —  O  C  — 
>ooo  ooo 

1  o'c'iio'co  o  o 

,  C  OJ  TJ*  --C  OJ  CO 
,  O  —  lO  X  OJ 


O  3  O 

if;  o  o 


•jBai 

qOB8     t     jfjUf     '38iOM 

188J81UI    panodmoo 


•jb8jC  q388  I  jfinp 
'sajOK  JB8ji  aaiqx  08"i 


(8981  '8  qoJ«I\[  ;3V) 
sAsp  09  11  puB  •sjX  s  ui 
aiqBiCBd's'a^oti  AIU8B3JX 


O<:DCI-»r«,^C>XC0a;irtt-X 

Sir;  —  cr.  -x  *-  if;  to  X  i-  ^  -^  CJ 
^  I- O^co  T-x  —  t--if;'<J'T50:o 

iffco'cTcf  x'w'cj 

ri  en  iC  C(  CJ 


oo 

iO  o 
if:  iO 

co  l-  i 

X  o:  c 


oo; 

iO  in  i 
^Xi 


;  oo 

;  -T  if; 


oooooooo 
o  o  o  iO  if;  in  o  if; 
ifs^o^o;  ^tt  coo;  x^ 

y?  —  in  CJ  co'i^pf  of 

yD'^i'if^wiTj'^-a; 

"»T)<cOCJCJC!'-i 


;  o  CJ  •- 
>  o  {-c 

■  —  oc 


'  '  o  o  o  o  c>  CJ  c*  X  »■-  in  in  in  in 

l£r!SS~'-'--^  —  otot-o 

J  [  ^,f^cj  o;  rr  t-cj  cox  ^  in  CO  I- 

I  t  7-<  X  Tf'co'in't^x  ffc  ^o't^co  rr" 

1  '  t-  r?  o  CJ  m  -^  ^  r^  o  4r  '-J  ^  5 

>  .TT  CO  -5'_^rH  Om  CJCJCJ  ri  >^.-l  ;:i 

I  I  CO  C>  oo  T-i 

I  I  in  rj' 


•ivbS.  qDBa  I  jfinf 
'ssanpaiqapaijo  sajBo 
giiasf)  jbbX  ano  puR 
saBoi  jCep-oi  jCaBiOdniaj, 


I  i\np  SaipnBjejno 
CiQ.'Ag  'oad  pnB '0981 

ir38a'i98rKqo-iBi\[ 

■jX  z  ptiB  ipoB  puBcaaQ 


;c  t-  ^  —  o 
3i  CJ  a:  ;c  m 
o,to^o  — 

CI  CO  i--" 


ICJ  CJ  — 


0  0-.  oooooooo 

t-  CJ  r-i  .-  t^  O  O  O  :o  CO 
o  o  CO  CO  co^in  in  in  o^o 

^  iff  30  CD  in' CO  Co' CO  x' 00 

CO  —  o;xooxxoD 

C»_X  rl  r- 

c'co 


iQCJCJCJCJCJCJCJCJinooOininin 

lO'-;-;  — —  T-H  --  —  —  C)inif5t-t-t-cj 
^,^o;^in  oiint--incjooxt— cOininin 

CO  c;  f- X  00 1-^ o' o  x' rr '^' -^ ^ '^' ■^' -^ 
*^S^St-^^'-'^ooia5o;a-.  osoio; 

'-'XXCJt-(t-i»-i»-i»-i 

o'cj' 


■"Jif^cOt-XOlO^^OCO^lOCOC-XCSOt-HOCO-ViOCOt^OOOS 

in  in  in  in  in  in  CD  en  CO  CO  CO  --o  CO  CO  CO  -^  t- 1-  I—  i-  t- 1-  I'- 1- 1-»  t- 

OOXXXXXXXXXXXXXXXXXXXXXXXQCGO 


192 


LABOR   AND    FINANCE    REVOLUTION. 


The  following  table  shows  the  transactions  in  refund- 
ing since  March  1,  1877: 


Title  of  Loan. 


Loan  of  1858 

Ten-forties  of  1864  ... 
Five-twenties  of  1865. 

Consols  of  1865 

Consols  of  1867 

Consols  of  1868 


Total. 


Rate 
per  ct. 


Am't  refunded. 


5 

$260,000 

5 

193,800,250 

6 

100,436,050 

.6^ 

202,663,100 

6 

310,622,750 

6 

37,473,800 

845,345,950 


The  following  described  bonds  will  mature  in  1880 


and  1881; 


Authorizing  Act. 

Rate  of 
interest. 

Date  of 
Maturity. 

Amount. 

February  8,1861  

6 
6 
6 
6 
5 

Dec.  31,  1880. 
June  30, 1881. 
June  30, 1881. 
Julyl,    1881. 
May  1,    1881. 

$18,415,000 

July  17and  Aug.  5,  1861... 
March  3,  1863 

182,605,550 
71,787,000 

Maich  2,  1861 

823,800 

July  14,  '70,  and  Jan.  20,  '71 

508,440,350 

Total        -              

782,071,700 

The  entire  transactions  in  refunding  since  1870  have 
been  as  follows: 


Title  of  Loan. 


Loan  of  1858 

Ten-forties  of  1864. 

Five-twenties  of  1862 

Five-twenties  of  March,  1864. 
Five-twenties  of  June,  1864... 

Five-twenties  of  1865 

Consols  of  1865 

Consols  of  1867 

Consols  of  1868 


Total 


Rate 
per  ct. 


5 
5 
6 
6 
6 
6 
6 
6 
6 


Am't  Refunded. 


$14,217,000 

193,890,250 

401,143,750 

1,327,100 

59,185,450 
160,144,500 
211,387,050 
316,423,800 

37.677,050 


1,395,345,950 


TABLES.  193 

Of  the  $363,802,400  of  U.  S.  bonds  held  as  security 
for  circulation  of  national  banks,  there  are  of 

6  per  cents $59,315,450 

5  per  cents 131,801,600 

A%  per  cents 34,866,950 

4_per  cents 138,318,400 

Excess  of  exports  over   imports   in  the  fiscal   year, 

are  as  follows: 

1876 _ $97,648,481 

1877 151,152,094 

1878 - 257,814,234 

1879 264,661,666 

The  department  of  agriculture  estimates  the  product 

for  1879,  as  follows: 

Corn 1,601,000,000  bushels 

Wheat 449,000,000       " 

Oats 364,000,000       " 

Barley 40,000,000       " 

Rye 24.000,000 

Cotton 2,217,000,000  pound* 

Tobacco 384,000,000 

Amount  and  disposition  of  money  in  the  country^ 

January  1,  1880,  as  follows  : 

Greenbacks  and  bank  notes $699,634,759 

Coin  and  bullion 398,770.564 


In  treasury $221,596,333— $1,098,405,323 

Bank  reserves 109,752,489—      331,348,822 

$767,056,501 
Estimated  loss  of  currency 130,000,000 

Total  currency  available $637,056,501 

The  national  banks  receive  annually  upon  bonds  de- 
posited for  the  security  of  their  circulation $17,152,396.75 

They  return  tax  upon  circulation  at  1  per  cent 3,009,647.16 

Net  gain  from  the  Government $14,142,749.59 

Profits  on  circulation  at  8  per  cent 24,884,084.00 

Total  annual  profit  on  circulation $39,026,833.59 

13 


194 


LABOR    AND    FINANCE    REVOLUTION. 


DEBTS,    REVENUES,    EXPENDITURES    AND    COMMERCE    OF 

NATIONS  (1878). 

Compiled  from  the  Almanach  de  Gotha,  the  Statist- 
ical Abstract  of  the  United  Kingdom,  and  from  official 
documents.  The  figures  are  for  the  latest  attainable 
years  as  to  each  country: 


Countries. 


ArgentinelRepublic. 

Austria  Proper 

Austria-Hungary 

Belgium .:.. 

Bolivia 

Brazil 

Canada 

Chili 

China 

Colombia 

Denmark 

Ecuador 

Egypt 

France 

Germany". 

Gt. Britain  &  Ireland 

Greece 

Guiana 

Hawaiian  Islands... 

Hungary  Proper 

India,  British 

Italy 

Japan 

Luxembourg 

Mexico 

Netherlands 

Norway 

Paraguay 

Peru 

Persia 

Portugal 

Roumania 

Russia 

Servia - 

Siam 

Spain 

Sweden  

Switzerland 

Turkey 

United  States 

Uruguay .. 

Venezuela.. 


Total  debts. 


Public  debt. 


$68,416,043 

1,419,096,072 

205,999,970 

2:J2,684,553 

17.500,000 

368,351,139 

112,248,378 

50,677.600 

3,200,000 

15,399,304 

5-',000,000 

17.500,000 

450,.540,000 

4,695,600,000 

30.000,000 

3,625.296,585 

40,012,000 

460,000 

548,022 

274.-358,915 

576,634,330 

1,977.117,845 

148.924.725 

2,400,000 

395,500,000 

391,242,322 

13,.526,128 

12.098,117 

213,482.680 

No  debt. 

428,977,613 

60,000,000 

1,420,092,043 

5,000,000 


2,401,612,'JOl 

39,241.142 

6,225,000 

1.012,712,200 

2,046,027,066 

43,615,000 

62,659,687 


22,937,036,780 


Revenue. 


$20,683,537 

186,776,170 

60.000,000 

50,048,972 

2,929,574 

72,548,454 

22,700,000 

21.294.383 

230,000,000 

3,114.619 

13,464,066 

20.800,000 

54,820,818 

514,605.716 

135.584,249 

392,825,180 

7.765,360 

1,590.000 

504.095 

106,1)69,2.58 

252.649,885 

279,550,000 

63.120,600 

1 ,438,600 

23.807,671 

43.973,345 

11,364,220 

609,000 

29.801,195 

8.240,000 

29,568,816 

19,.578,885 

409.377.280 

2,968,422 

4,000,000 

131,500,01,0 

23.563,201 

8,297,480 

88,764,050 

269,800,587 

6,965,683 

3,549,000 


Expendi- 
tures. 


$20,663,337 
202,035,039 
58.845,695 
49.045.128 
4,505,504 
67,789,297 
24,100,000 
22,052,187 


2,779,410 

13,074.620 

21.500,455 

54.7-37 .670 

519.334,162 

13.5,000.000 

390,626,140 

7,832  768 

4.580,01 '0 

460,000 

116,902.036 

272,503,145 

278,121 .440 

62,993,8-50 

1,409,344 

24.891.522 

48.785,061 

10,726,500 

750,000 

33.755.373 

8,750,000 

29.720.336 

19.578,885 

410.557,403 

2,924,779 

4.000,000 

131,824,000 

21,872,193 

8,524.400 

140,000,000 

238,660,009 

6,809,000 

3,642,500 


Imports. 


$34,910,290 


258.450,000 

258,504,000 

5,750,000 

88.045,520 

93,200,000 

39,050.197 

105,000,000 

6,949,028 

50,311,240 

7,596.264 

29.000,000 

4,111,000 

918,8.50.000 

1 .869,695,885 

7911,035,000 

1.811.770 

1,682,000 


179,000,000 

265,899,000 

24,087,515 


29.062.407 

275,416,000 

52,017.280 

565,595 


5,625,000 

38,131,520 

16,200,000 

365,426,400 

6,197,000 

7.100,000 

114,000,000 

85,906,800 

Not  given, 

72,430,000 

492,090,406 

21,917,800 

12,000,000 


Exports. 


$44,041,131 


204,800,000 

222.920,400 

5,000,000 

104,232,800 

89,851,328 

37,139,961 

114,000,000 

9,994,386 

3:i,933,640 

3,913,536 

68,000,000 

9.280,000 

608,21  Hl.OOO 

1,283,883,010 

713,978,200 

2,241,040 

2,090,000 


282,600,000 

243,371,000 

27,669,465 


31,659,151 

261,750,000 

33,933,640 

607,653 

37,.500.O00 

2,813,000 

26,448,600 

28,440,000 

422,966,400 

5,500,000 

8,-300,000 

90,000,000 

62,532,960 

Not  given. 


658,637,457 
16,953,000 
17,000,000 


I 


TABLES. 


195 


PUBLIC    DEBT   OF   THE    UNITED    STATES,  1791-1879. 

Statement  of  outstanding  principal  of  the  public  debt 
of  the  United  States  on  the  1st  of  January  of  each  year 
from  1791  to  1842,  inclusive;  and  on  the  1st  of  July  of 
each  year  from  1843  to  1879,  inclusive: 

(From  the  Annual  Report  of  tlie  Secretary  of  the  Treasury  on  the 

Finances.) 


1791.. 

$75,463,476  5'^ 

1831.. 

$89,987,437  66 

1851.. 

$68,304  796  03 

1792- . 

77,337,934  66 

1833.. 

93,546,676  98 

1853.. 

66,199,341  71 

1793.. 

80,353,634  04 

1833.. 

90,875,877  38 

1853.. 

59,803,117  70 

1794.. 

78,437,404  77 

1834.. 

90,369,777  77 

1854.. 

•  42,342.222  42 

1795.. 

80,747,587  39 

1835.. 

83,788,433  71 

1855.. 

35,586,858  56 

1796.. 

83,763,173  07 

1826.. 

81,054,059  99 

1856.. 

31,972,537  90 

1797.. 

83,064,479  33 

1837.. 

73,987,357  30 

1857.. 

28,690,831  85 

1798.. 

79,338,539  13 

1828.. 

67,475,043  87 

1858.. 

44,911,881  03 

1799.. 

78,408,669  77 

L8-29.. 

58,421,413  67 

1859.. 

58,496,837  88 

1800.. 

83,976,294  35 

1830- . 

48,565,406  50 

I860.. 

64  842,287  88 

1801.. 

83,038,050  80 

1831.. 

39,123,191  68 

1861.. 

90,580,873  73 

1803.. 

86,713,633  35 

1833.. 

24,333,335  18 

1862.. 

524,176,412  13 

1803.. 

77,054,686  30 

1833.. 

7,001,698  83 

1863.. 

1,119,772,138  63 

1804.. 

86,437,130  88 

1834.. 

4,760,082  08 

1864- . 

1,815,784  370  57 

1805.. 

83,313,150  50 

1835 . . 

37,513  05 

1865.- 

2,680,647,869  74 

1806.. 

75,733,370  66 

1836.. 

336,957  83 

1866.. 

2,773,236,173  69 

1807.. 

69,218,398  64 

1837.. 

3,308,124  07 

1867.- 

2,678,126,103  87 

1808.. 

65,196,317  97 

1838.. 

10,434,331  14 

1868-. 

2,611,687,851  19 

1809.. 

57,023,192  09 

1839.. 

3,573,343  83 

1869.- 

2,588,452,213  94 

1810.. 

53,173,317  52 

1840.- 

5,250,875  54 

1870.. 

2,480,672,427  81 

1811.. 

48.005,587  76 

1841.. 

13,594,480  73 

1871.. 

2,353,211,332  32 

1813.. 

45,309,737  90 

1843.. 

20,601,226  28 

1872.. 

2,253  251,328  78 

1813.. 

55,963,837  57 

1843.. 

32,742,922  00 

1873.. 

2,234,482,993  20 

1814.. 

81,487,846  24 

1844.. 

23,461,652  50 

1874.. 

2,251,690,468  33 

1815.. 

99,833,660  15 

1845.. 

15,925,303  01 

1875.. 

2,232,284,531  95 

1816.. 

137,334,933  74 

1846.. 

15,550,202  97 

1876.. 

2,180,395,067  15 

1817.. 

123,491,965  16 

1847.. 

38,826,534  77 

1877.. 

2,205,301392  10 

1818.. 

103,466,633  83 

1848.. 

47,034,862  23 

1878.. 

3,256,205,892  53 

1819.. 

95,539,648  28 

1849.. 

63,061,858  69 

1879.. 

2,245,495,072  04 

1830.. 

91,015,566  15 

1850.. 

63,452,773  55 

196 


LABOR    AND    FINANCE   REVOLUTION. 


POPULATION,    CAPITALS    AND    AREAS    OF     PRINCIPAL     NA- 
TIONS. 


Countries. 


Argentine  Republic  .. 

Austria-Hungary 

Belgium 

Bolivia 

Brazil 

Canada,  Dominion  of 

Chili 

Chinege  Empire 

Colombia 

Egypt 

Denmark 

Ecuador 

France 

Germany 

Great|Britainand  Ireland 

Greece 

India,  British 

Italy 

Japan 

Mexico 

Morocco 

Netherlands 

Norway 

Paraguay 

Persia 

Peru 

Portugal 

Russian  Empire 

Roumania 

Servia 

Siam 

Spain 

Sweden 

Switzerland 

Turkey 

Uruguay 

United  States 

Venezuela 


Capital. 


Buenos  Ayres 

Vienna 

Brussels 

La  Paz 

Rio  de  Janeiro... 

Ottawa 

Santiago 

Pekin 

Bogota 

Cairo 

Copenhagen  

Quito 

Paris 

Berlin 

London 

Athens    

Calcutta 

Rome 

Yeddo 

Mexico 

Morocco 

Amsterdam 

Christiania 

Asuncion 

Teheran 

Lima 

Lisbon 

St.  Petersburg... 

Bucharest 

Belgrade 

Bangkok 

Madrid 

Stockholm .. 

Berne 

Constantinople.. 

Montevideo 

Washington 

Caracas 


Inhab- 

Last 

Area 

itants 

Cen- 

Popnlation. 

Square 

to    the 

sus. 

Miles. 

Square 
Mile. 

1875 

1,715,681 

871,000 

1.96 

1869 

35,904,435 

226,406 

158.58 

18ti6 

4.839,094 

11,412 

424,03 

1861 

1,742,352 

473,300 

3.70 

1872 

10,108,291 

3,275,326 

3.08 

1871 

3,602,321 

3,483,952 

1.03 

1875 

2,068,447 

130,977 

15.79 

Est. 

433,500,000 

3,924.627 

110.45 

1870 

2,951,311 

432,400 

6  07 

Est. 

5,252,000 

212,600 

24.70 

1870 

1,912,142 

14,553 

131.32 

1875 

866,137 

218,984 

3.49 

1876 

36,905,788 

201,900 

182.79 

1875 

42,727,360 

212,091 

201.45 

1871 

31,628,.338 

121,230 

268,08 

1870 

1,457,894 

19,941 

72.96 

1871 

190,663,623 

950,919 

200,50 

1875 

27,482,174 

112,677 

243.91 

1874 

33,625,678 

156,604 

214.71 

1871 

9,276,079 

1,0,30,442 

9.0O 

Est. 

6,000.0(10 

219,000 

27.,39 

1876 

3,865,456 

20,527 

188.31 

1876 

1,807,555 

122,280 

14.78 

1873 

221,079 

57,303 

3,85 

Est. 

6,500,000 

648,000 

10.03 

1876 

2,673.075 

502.760 

5.31 

1872 

4,429,382 

36,510 

121.31 

1876 

86.952,347 

8,404.767 

10.34 

1873 

5,073,000 

16,817 

301.65 

1874 

1,352,822 

19721 

68  59 

Est. 

6,300,000 

250,000 

25.20 

1870 

16,835,506 

182.758 

92.11 

1876 

4,429,713 

270,980 

2.5,90 

1876 

2,759,854 

15,233 

181.17 

Est. 

31,939,738 

1,812,048 

17.62 

1876 

445,000 

70,000 

6,35 

1870 

38,925,598 

3,603,884 

10.80 

1873 

1,784,197 

368,235 

4.9'^ 

I 


TABLES. 


197 


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198 


LABOR    AND    FINANCE    REVOLUTION. 


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TABLES. 


199 


COMPOUND    INTEREST. 
The  Amount  of  One  Dollar  for  Fifty  Years. 


Years. 

3prCent. 

4prCem. 

5pr  Cent. 

6pr  Cent. 

8  pr  Cent. 

10  pr  Cent. 

Years. 

1 

1-C300 

1-0400 

1-0500 

1-0600 

1-0800 

1-1000 

1 

2 

1-0609 

1.0816 

1-1025 

1-1236 

1-1664 

1-2100 

2 

3 

10927 

1-1249 

1-1576 

1-1910 

1-2597 

1-3310 

3 

4 

M255 

1-1699 

1-2155 

1  -26-^5 

1-36(15 

1  4641 

4 

5 

1-1593 

1-2167 

1-2763 

l-:i382 

1-4693 

1-6105 

5 

6 

11941 

1-2653 

1-3401 

1-4185 

1-5869 

1-7716 

6 

7 

1-2299 

1  3159 

1-4071 

1-5036 

1-7138 

1-9487 

7 

8 

1-2668 

1  3686 

1-4775 

1-59.38 

1  -8509 

2-14-:i6 

8 

9 

1-3048 

1-4233 

1-5513 

1-6895 

1  9990 

2-3579 

9 

10 

1-3439 

1-4802 

1  6289 

1-7908 

2-1589 

2.5937 

10 

11 

1-3842 

1-5395 

1-7103 

1-8983 

2-3316 

2-8531 

11 

12 

1-4258 

1-6010 

1  7959 

201-22 

2-5182 

31384 

12 

13 

1  4685 

1-6651 

1-8856 

2-1. -329 

27196 

3-4523 

13 

14 

1-5126 

1-7317 

1-9799 

2-26(19 

2-9372 

3-7975 

14 

*15 

1  5580 

1  -8009 

2-0789 

2-3966 

3- 1722 

4-1773 

*15 

16 

1-6047 

1-873C 

2  1829 

2-5404 

3-4259 

4-59  0 

16 

17 

1  6528 

1-9479 

2-29-.:o 

2-6928 

3-7000 

5-0545 

17 

18 

1-70-24 

20258 

2-4066 

2-8543 

a -9960 

5-5599 

18 

19 

1-7535 

2-1068 

2  5270 

3  0256 

4-3157 

6-1159 

19 

20 

1-8061 

21911 

2  6533 

3-2071 

4-6610 

6-7274 

20 

21 

1-8603 

2-2788 

2  7860 

3-3996 

5  0338 

7-4002 

21 

22 

1-9161 

2-3699 

2-9.>53 

3  6035 

5-4365 

8-1403 

22 

23 

1-9736 

2-4647 

3-0715 

3-8197 

5-8715 

8  9513 

23 

24 

2  03-28 

2-5633 

3-2-251 

4-0489 

6-3412 

9  8497 

24 

25 

2-0938 

2-6H58 

3-3864 

4-2919 

6-8485 

10-8347 

25 

26 

2-1566 

2-7725 

3-5557 

4-.5494 

7  3904 

11-9182 

26 

27 

2-2213 

2  8834 

3-7335 

4-8223 

7-9881 

13-1100 

27 

28 

2.2S79 

2-9987 

3  9202 

5-1117 

8-6271 

14-4210 

28 

29 

2-3566 

3-1187 

41162 

5-4184 

9  3173 

15-8631 

29 

30 

2-4273 

3-2434 

4-3219 

57435 

1006'27 

174494 

30 

31 

2-5001 

3-3731 

4-5380 

6-0881 

10-8677 

19-1943 

31 

32 

2-5751 

3 -.5081 

4-7649 

6-4534 

11-7371 

21-1138 

32 

33 

2-6523 

3-6484 

50032 

6-8406 

12-6761 

23-2-252 

33 

34 

2-7319 

3  7943 

5-2533 

7-2511 

13-6902 

25-5477 

34 

85 

2-8139 

3-9461 

5.5160 

7-6861 

14-7853 

28-1024 

35 

36 

2-8983 

41039 

5-7918 

8-1473 

15-9682 

30  91-27 

36 

37 

2-9852 

4-2681 

60814 

8-6368 

17  2456 

84.0039 

37 

38 

3-0748 

4-4388 

6 -.38.55 

9-1543 

18-6-2.53 

37-4043 

38 

39 

3-1670 

4-6164 

6-7048 

9-7035 

20-11.53 

41  1448 

39 

40 

3-26-20 

4-8010 

7  0400 

1(1-28.57 

•21-7245 

45-2593 

40 

41 

3-3599 

4-9931 

7-3920 

10-9029 

23  •46-25 

49-7852 

41 

42 

3-4607 

5-19'2S 

7.7616 

11-5570 

25-3395 

54.7637 

42 

43 

3-5645 

5-4005 

8- 1497 

12-2505 

27-3666 

60-2401 

43 

44 

3-6715 

5-6165 

8-5572 

12-9855 

•29-5.560 

66"2641 

44 

45 

3-7816 

5.8411 

8  9850 

13-7646 

31-9204 

72-8905 

45 

46 

3-8950 

6-07-48 

9-4343 

14-5905 

34-4741 

80- 1795 

46 

47 

40119 

6-3178 

9-9060 

15-4ti59 

37'2:W0 

88-1975 

47 

48 

4-1323 

6-5705 

10-4013 

16-3939 

40-2106 

97  0172 

48 

49 

4-2562 

6-8333 

10-9213 

17-3775 

43-4274 

106-7190 

49 

50 

4-38:i9 

7-1067 

11-5674 

18-4202 

46.9016 

1 17-3409 

50 

♦Example.— $1  accumulated  for  fifteen  -years,  at  3  per  cent,  interest,  will  amount 
to  $1.56;  at  4  per  cent.,  to  $1.80;  at  5  per  cent.,  to  $2.08;  at  6  per  cent.,  to  $2.40; 
at  8  per  cent.,  to  |3.17;  at  10  per  cent.,  to  $4.18. 


200 


LABOR   AND    FINANCE    REVOLUTION. 


The  following  tables  prepared  at  the  agricultural  de- 
partment from  the  estimated  and  reported  crop  returns, 
show  the  amount  of  the  several  staples  named  raised  in 
the  United  States  for  the  years  1878  and  1879. 

PRODUCTS  AND  VALUE   FOR   1879: 


Crops. 


Wheat,  bushels 

£oTn,  bushels 

Oats,  bushels 

Rye,  bushels 

Barley,  bushels 

Buckwheat,  bushels. 

Cotton,  bales :. 

Tobacco,  lbs 

Hay,  tons 

Potatoes,  bushels 


Total. 


Products. 


448,755,000 
1,544,899,000 

364,253,000 

23,646,500 

40,184,200 

13,145,650 

5,020,387 

382,459,659 
35,668,000 

181,469.000 


Values. 


$489,008,000 
580,259,000 
120,855,000 

15,505,000 

23,625,300 

7,860,480 

231,000,000 

21  545,591 
325,851,280 

78.971,000 


$1,894,480,651 


COMPARISON   WITH    1878. 

The  statement  for  the  year  1878  is  as  follows; 


Crops. 

Products. 

Values. 

Wheat,  bushels 

460,122,400 

1,488,218,750 

414,478,500 

25,842,790 

42,245,630 

12,246  820 

5,216,603 

392,546,700 

39,608,296 

124,126,650 

$326,340,424 

Corn,  bushels 

441,153,4u5 

Oats,  bushels 

101,940,830 

Rye,  bushels 

Barley,  bushels 

13,592,726 
24,483,315 

Buckwheat,  bushels 

Cotton,  bales 

6,454,120 
193  854,641 

Tobacco,  lbs . 

22,137,428 

Hay,  tons 

295,543,952 

Potatoes,  bushels 

73,059,125 

Total 

$1,498,559,966 

From  this  report  it  will  be  seen  that  the  value  of  the 
crop  of  1879  exceeds  that  of  the  preceding  year  by 
over  $400,000,000. 


TABLES.  201 

Total  amount  of  specie  imported  from  January  1, 
1879,  to  November  15,  was  $75,512,092.  Production 
for  the  fiscal  year  1879,  $79,711,990,  of  which  $38,899,- 
850  was  gold,  and  $40,812,132  was  silver. 

Average  rate  of  interest  on  commercial  paper  in  the 
City  of  New  York  in  1874,  6.4  per  cent.  In  1879,  it 
averaged  4.4  per  cent.  Average  rate  of  interest  of  the 
Bank  of  England,  January  30,  1878,  was  2  per  cent. 
On  November  7,  1879,  it  was  3  per  cent.  Average  in- 
terest of  the  Bank  of  France,  November  7,  1879,  was  3 
per  cent. 

Tlie  comptroller's  office  employs  ninety-seven  men  to 
take  charge  of  the  national  banking  department  who 
are  paid  by  the  Government,  and  their  salaries  are  as 
follows : 

1  Receives $5,000  a  year. 

1  "        2,800      " 

4  "        2,200  each. 

5  "        2,000 

8        "        ..-• 1,800 

11  "  ---- -- 1.400 

8  "  1,200 

2  "  1,000 

1  "  840 

3  "  720 

5  "  600 

40        "        900 

Annual  expenses  for  dies,  plates,  printing,  etc.,  are 
$104,420. 

THE    POWER    OF    INTEREST    TO    ROB. 

Money  at  2  per  cent.^  doubles  in  35  years. 

Money  at  3  "                ..       -     -, 

Money  at  4  " 

Money  at  5  " 

Money  at  6  " 

Money  at  7  " 

Money  at  8  " 

Money  at  9  '• 

Money  at  10  " 

Our  national,  State,  municipal,  corporate  and  indi- 


"•  23      " 

"  17     " 

u    14        u 

"  11      " 

"  10     " 

u      9        u 

"     8      " 

11      7       ti 

202  LABOR    AND    FINANCE    KEVOLUTION. 

• 

vidual  indebtedness,  held  by  the  usurer  classes,  amounts 
to  OS" QY  fourteen  thousand  nhillion  dollars:  drawing  an 
average  annual  interest  of  six  per  cent. 

The  total  wealth  of  the  United  States  at  present  valu- 
ation, does  not  exceed  thirtv  thousand  million  dollars. 
Contraction  of  the  currency  to  a  specie  basis  will  per- 
petuate and  immortalize  this  indebtedness,  so  that  Shy- 
lock  will  receive  the  equivalent  of  the  entire  country 
every  twenty-two  years,  for  all  time  to  come. 

Did  the  nation  ever  need  a  savior  more  than  now  ? 
Greenbacks  saved  it  once,  and  nothing  but  a  plenty  of 
debt-paying  greenbacks  will  save  our  country  now  from 
confiscation,  and  our  people  from  pauperism  and  slavery. 

THE    INCREASING-  VALUE    OF    MONEY. 

The  constitution  enjoins  upon  Congress,  among  other 
things,  the  duty  of  coining  money  and  regulating  the 
value  thereof. 

The  only  way  the  value  of  money  can  be  regulated  is 
by  regulating  its  quantity. 

This  is  a  prerogative  specially  delegated  to  Congress, 
and  as  the  chief  object  of  Government  is  to  promote  the 
general  welfare,  it  would  seem  that  the  time  of  Congress 
could  be  much  more  profitably  spent  than  in  the  exhaust- 
ive eflforts  of  one  party  in  knocking  down  the  political 
pins  of  the  other  as  fast  as  set  up. 

There  is  nothing  the  commercial  and  industrial  in- 
terests  of  the  country  so  much  need  as  a  check  on  the 
increasing  value  of  money. 

In  1865  a  dollar  was  worth  20  pounds  of  flour. 

In  1867  "  "  "  22 

In  18(i9  "  "  "  30 

In  1872  '  "  "  33 

In  1874  "  "  "  35        "              " 

In  1876  "  "  "  45 

In  1878  "  "  "  60        "             " 


TABLES.  203 

Thus,  while  debt,  interest  and  taxes  remain  stationary, 
dollars  are  becoming  so  valualjle  that  men  can  hardly 
procure  enough,  with  the  greatest  economy,  to  meet 
maturing  obligations  and  defray  current  expenses. 

SALARIES    OF    PUBLIC    OFFICERS. 

The  following  table  contains  a  condensed  list  of  the 
salaries  of  some  of  the  principal   public  officers  in  the 

United  States: 

President  of  the  United   States $50,000 

Vice-President  of  the  United  States 8,000 

Seven  Cabinet  officers,  each   8,000 

Ministers  to  England,  France,  Germany  and  Russia,  each...  17,500 

Seven  other  Foreign  Ministers,  each 12,000 

Three     "            "                "            "     10,000 

Nine       "            "               "            "     7,500 

Consuls  get  from  $3,000  to -.  6,000 

Supreme  Court  Judges,  each   10,000 

Supreme  Couit  of  Claims  Judges,  each 4,500 

District  Judges,  from  3,500  to 4,000 

Governors  cf  New  York  and  Pennsylvania,  each 10,000 

Governors  of  California,  Colorado  and  Nevada,  each.. 6,000 

Governors  of  other  States,  $1,000  to 5,000 

PUBLIC  DEBT  PER  CAPITA. 

In  1860  the  public  debt  per  capita  was  $1.90,  and  the 
interest  per  capita  was  11  cents.  In  1879  the  public 
debt  per  capita  was  $50,  and  the  interest  $2.50  per 
capita.  This  seems  but  a  trifle,  but  when  w^e  reflect 
that  this  is  a  steady,  ceaseless,  never-ending  drain  of 
$2.50  per  annum  for  every  man,  woman  and  child  in 
America  for  all  time  to  come,  its  efi:ects  will  be  like 
holding  out  at  arm's  length  a  pound  weight,  which  at 
first  requires  slight  strength,  but  soon  becomes  exhaust- 
ing, and  finally  unendurable.  Ireland  has  been  reduced 
from  affluence  to  her  present  condition  of  misery  and 
abject  poverty  by  a  steady  rent  drain  of  $1.60  per  capita 
since  her  soil  went  into  the   hands  of  absent  landlords. 


204 


LABOR   AND   FINANCE   KEVOLUTION. 


SUPREME    COURT    OF    THE    UNITED    STATES. 


Chief  Justices. 


John  Jayt. 


John  Rutledget-.. 
Oliver  Ellswortht. 


John  Marshall. 


Roger  B.  Taney. 


Salmon  P.  Chaee. 


Morrison  R.  Waite. 


Associate  Justices. 


John  Rutledget.. 
vVilliam  Cushing. 

James  Wilson 

John  Blaiit 

Rob.  H.  Harnsont 

James  Iredell 

Thomas  Johnsont 
vVilliam  Patterson 


Samuel  Chase 


Bus'd  Washington 
Alfred  Alooret 


William  Johnson. 
Brock'tLivingston 
Thomas  Todd  .... 

Joseph  Story 

Gabriel  Duvalf.  - 
Smith  Thompson. 
RobenTrirable... 

John  McLean 

Henrv  Baldwin  .. 
James  M.  Wayne§ 


Pliilip  P.  Barbour 

John  Catron 

John  McKinley.. 
Peter  V.  Daniel  .. 
Samuel  Nelsont.- 
Lcvi  Woodbury  .. 
Roberto.  Griert.. 
B'-'iij.  R.  Curtist  . 
John.A..Campbellt 
Nathan  Cliflbrd  .. 
Noah  H.  Swayne. 
Samuel  F.  Miller. 

Diivid  Davist 

Stephen  J.  Field. 


William  Strong. .. 
Joseph  P.  Bradley 
Ward  Hunt 


39  John  M.Harlan.. 


State 

Whence 

Appointed 


Term    of 
Service 


New  York. 
S.  Carolina 

Mass 

Penn 

Virginia.... 
.Maryland.. 
N.  Carolina 
Maryland.. 
New  Jersey 
S.  Carolina 
Maryland.. 

Conn 

Virginia  .. 
N.  Carolina 
Virginia  .. 
S.  Carolina 
New  York. 
Kentucky.. 

Mass 

Maryland 
New  York. 
Kentucky.. 

Ohio 

Penn 

Georgia 

Maryland.. 
Virginia  .. 
Teuiiessee  - 
Alabuna... 
Virginia  ... 
New  York 
New  Hamp 

Penn 

Mass 

.\labama... 

Maine 

Ohio 

Iowa 

Illinois 

California.. 

Ohio 

Penn 

New  Jersey 
New  York. 

Ohio 

Kentucky.. 


-  o 


1789-179.1 
■89-1791 
1789-1810 
1789-1798 
1789-1796 
1789-1790 
1790-1799 
1791-1793 
'93-180K 
1795-1795 
1796-1811 
1796-1801 
179S-1829 
1799-1804 
ISOl-1835 
1804-1834 
1806-1823 
1807-18-26 
1811-1845 
1811-1836 
18-23-1845 
18-26-1828 
18-29-1861 
1830-1846 
1835-1867 
1836-1864 
1836-1841 
1837-1865 
1837-18.52 
1841-1.%0 
184.5-1872 
1845-1851 
1846-1889 
1851-1857 
1853-1861 
1857-...- 
1861-.... 
186-2-.... 
186-2-1877 
1866-.. . 
1864-187 
1870-.. . 
1870-.. . 
1872-.. . 
1874-.. . 
1877-... 


1745 

1739 

1733 

1742 

1732 

1745 

1751 

1732 

1745 

1739 

1741 

1745 

1762 

1755 

17.55 

1771 

1757 

1765 

1779 

17.51 

1761 

177'; 

1785 

1779 

1790 

17 

1  83 

1778 

1780 

1785 

1792 

1789 

1794 

1809 

1811 

1803 

1805 

1816 

1815 

1816 

1808 

1808 

1813 

1811 

1816 

1833 


1829 
1800 
1810 
1798 
1800 
1790 
1799 
1819 
1806 
1800 
1811 
1807 
1829 
1810 
1835 
1834 
18-23 
18-26 
1845 
1844 
1845 
1828 
1861 
1846 
1S67 
1864 
1841 
1865 
1852 
i860 
1873 
1851 
1870 
1874 


1873 


*The  figures  before  the  names  of  the  Associate  Justices  indicate  the  order  of 
their  appointment.  The  numbers  following  refer  to  the  same  numbers  in  the  first 
column,  and  show  the  vacancy  filled  by  each  appointment. 

tResigned. 

jPresided  one  term  of  the  court;  appointment  not  confirmed  bv  the  Senate. 

§The  Supreme  Court,  at  its  first  session  in  1790,  consisted  of  a  Chief  Justice  and 
five  Associates.  The  number  of  Associate  Justices  was  increased  to  sis  in  1807  by 
the  appointment  of  Thomas  Toddj^mcreased  to  eight  in  1837  by  the  appointments 
of  John  Catron  and  John  McKinley;  increased  to  nine  in  1863  by  the  appointment 
of  Stephen  J.  Field;  decreased  to  eight  on  the  death  of  John  Catron  in  1865;  de- 
creased to  seven  on  the  death  of  James  M.  Wayne  in  1867;  and  again  increased  to 
eight  in  1870. 


TABLES. 


205 


FAir-UEES  OF  BUSINESS   MEN. 


In  the  following  table  we  give  the  number  of  failures 
each  year  from  1857  to  1879,  and  the  amount  of  liabil- 
ities: 


Year. 

Number. 

Amount. 

1857    

4,932 

4,225 

3,913 

3,673 

6,993 

1,652 

485 

520 

530 

532 

2,386 

2,008 

2,799 

3,551 

2,915 

4,069 

5,183 

5,882 

7,740 

9,092 

8,873 

10,478 

$201,750,000 

1858 

95,749,000 

1859  

64,394,000 

I860  

79,807,000 

1861         

207,210,000 

1862    

23,049,309 

1863       

6,864,700 

1864   

8.579,000 

1865  

17,625,000 

1866   

47,333,000 

1867 

86,208,000 

1868 

63,774,000 

1869          

75,954,009 

1870 

1871        

88,242,!  lOO 
86,252,000 

1872     

121,056,000 

1873   

228,499,000 

1874 

155,339,000 

1875  - 

201,070,363 

1876 

191,119.786 

1877 

190,660,936 

1878.. 

234,383,132 

1879.-..-. 

Tn  May,  1878,  Congress  passed  an  act  to  stop  the  de- 
struction of  greenbacks,  since  which  time  the  currency 
has  been  increasing  in  volume,  times  have  been  getting 
better,  and  the  number  of  bankruptcies  have  been  de- 
creasing. 


206 


LABOR    AXD    FINANCE    KEYOLUTION. 


A    STARTLING    TABLE    OF    FIGURES THE   GREAT    MAELSTROM 

OF    ERROR    EXPOSED    TO    VIEW. 

The  following  table  exhibits  a  statement  of  the  num- 
ber of  State  banks,  the  amount  of  their  circulating 
notes,  and  the  amount  of  specie  thej  held  at  different 
periods  from  ITS-i  to  1861: 


Year. 


1784. 

1790. 

1796. 

1800. 

1811. 

1815. 

1820. 

1830. 

1834. 

1835. 

1836 

1837 

1838. 

1839- 

1840. 

1841- 

1843. 

1843. 

1844. 

1845. 

1846. 

1847. 

1848. 

1849. 

1850. 

1851. 

1853. 

1854. 

1855. 

1856. 

1857. 

1858. 

1859. 

1860. 

1861. 


No.B'ks. 

Circulation. 

3 

$2,000,000 

4 

2,500.000 

24 

10,500,000 

28 

10,500,000 

89 

28,100,000 

208 

110,000,000 

308 

44,863,344 

330 

61,323,838 

506 

94,839,570 

704 

103,692,495 

713 

140,301,038 

788 

149,185,890 

829 

116,138,910 

840 

135,170,995 

901 

106,968,572 

784 

107,290,214 

692 

83,734,011 

691 

58,563,608 

696 

75,167,646 

707 

89,680,711 

707 

105,552,427 

715 

105.509  766 

751 

128,506,091 

782 

114,743,415 

824 

131,366,526 

879 

155,165,251 

750 

146,072,780 

1208 

204,689,207 

1307 

186.952,226 

1898 

195,747,950 

1416 

214,'778,882 

1423 

155,208,344 

1476 

193,306,818 

1562 

207,102,477 

1601 

203  005  767 

Specie. 


$10,000,000 
9,000  000 
16,500,000 
17,500,000 
15,400,000 
17,000,000 
19,820,240 
22,114,917 

43,937,625 
40,019,594 
37,915,340 
35,184,112 
45.132,673 
33,105,155 
34,813,958 
28,440,423 
33,515,806 
49,898,269 
44,241,242 
42,012,095 
35,132,516 
46,369,765 
43,619,368 
45,379,345 
48,671,048 
47,138,592 
59,410,253 
53,944,546 
59,314,063 
58,349,838 
74.412.832 
104,537,818 
83,594,537 
87.674,507 


TABLES. 


207 


If  the  reader  will  examine  closely  the  above  table 
thev  will  discover  three  inir)ortant  facts.  1.  That  the 
number  of  banks  in  operation  at  different  periods  in- 
creased and  diminished  greatly.  2.  That  tlie  volume 
of  bank  notes  in  circulation  was  subject  to  rapid  and 
extensive  expansion  and  contraction.  3.  That  the 
amount  of  specie  held  by  the  banks  up  to  181 1  gradu- 
ally preponderated  over  the  volume  of  bank  notes,  and 
that  thereafter  it  was  subject  to  expansion  and  contrac- 
tion to  a  marked  degree,  but  was  always  less  than  half 
in  volume  to  that  of  bank  notes  out  any  one  time. 

POPULAK    VOTE    OF    1856. 


States. 

James  Buchanan 
Democratic. 

John  C.  Fremont 
Republican. 

M.  Fillmore, 
American. 

Total 
Vote. 

Vote. 

Maj. 

Vote. 

Maj. 

Vote. 

Maj. 

1 

Alabama 

Arkansas 

California 

Connecticut  .. 

Delaware 

Florida 

Georsrta 

Illinois 

Indiana 

Iowa 

46,739 

21,910 

53.365 

34,995 

8,004 

6,358 

56,758 

105,348 

118,670 

36,171  > 

74,642 

22,164 

39,080 

39,115 

39,240 

52,13f; 

35,446 

68,164 

32,789 

46,943 

195,878 

48,246 

170,874 

230,710 

6,680 

Electors 

73,638 

31,169 

10,569 

89,706 

52,843 

18,187 

ll,12:i 

*  17,200 

"l',52l 

1,525 

14,350 

t9,159 

1,909 

"'b',9i2 
1,455 

"ll'2.5i 
9,640 

"*"l8",605 

""ll",360 

""\sm> 

chosen 

7,460 

15,530 

""29",i05 

28,552 
111,787 
36,165 

2,615 

6,175 

4,8 '.3 
42,228 
37,444 
22,386 

9,180 
67,416 
20,709 

3,-325 
47,460 
19,626 

1,660 

24,195 

48,524 

422 

24,115 

124,604 

36,886 

•28,126 

82,175 

1,675 

lature. 

66,178 

15,639 

545 

60.310 

579 

•-  -  -  - 

""'8,664 

75,291 

9 

32,697 

3 
4 
5 
6 

20,691 

4-^,715 

308 

""sjios 

110,221 
80,325 

14,487 
11,191 

7 

98,806 
238,981 
235,431 

89,304 

8 
9 

in 

96,189 

94,375 

43,954 

314 

"|Y,784 

n 

1'^ 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Mississippi... 

Missouri    

N.  Hampshire 
New  Jersey  .. 

New  York 

North  Carolina 
Ohio 

142,372 
42  873 

13 
14 
15 
16 
17 
18 

67,379 

28! 

108,190 

71,762 

24,974 

"49",  .324 
17,966 

109,784 
86,8.56 

167,056 

125,558 
59,641 

106,683 

19 
20 
21 
9-7 

38,345 

28,338 

276,007 

J  5,314 
$80,129 

71,5.56 

99,396 

596,489 

85,132 

n 

187,49; 
147,510 
11,467 
by  the 

tl6,623 

"""3412 
Legis- 

386,497 

24 
25 
fjf, 

Pennsylvania  . 
Rhode  Island. 
South  Carolina 

Tennessee 

Texas 

Vermont 

Virginia  

Wisconsin 

Total 

Buchanan's  Pli 

460,395 
19,822 

27 

139,816 

2R 

46,808 

29 
30 
31 

39,561 

291 

66,090 

28,447 
"'i2;6'8 

50,675 
150,307 
119,512 

1,838,169 
irality... 

142,353 
t496.905 

1,341,264 

146,730 

874,534 

8,064 

4,053,967 

♦Plurality  over  Fillmore.     tPlurality  over  Fremont.     ^Plurality  over  Buchanan. 


208 


LABOR    AND    FINANCE   KEVOLUTION. 


POPULAR    VOTE    OF    1876. 


States. 

S.  J.  Tilden, 
Democratic. 

R.  B.  Hayes, 
Republican. 

O  33 

O  a 

si 

•is 

ti 

a 

'u 
o 

o 

* 

Total 
Vote. 

Vote. 

Maj. 

Vote. 

Maj. 

1 

Alabama 

Arkansas 

California 

Colorado 

Connecticut  . . 

Delaware 

Ploi-idat 

Georgia 

Illinois 

Indiana 

Iowa 

102,002 

58,071 

76,465 

Electors 

61,934 

13,381 

22.923 

130,088 

258,601 

213,526 

112,099 

37,902 

159,690 

70,508 

49,823 

91,7b0 

108,777 

141,095 

48,799 

112,173 

203,077 

17,554 

9,308 

38,509 

115,962 

521.!'49 

125,427 

323,182 

14,149 

368,158 

10,712 

90,906 

135,166 

104  755 

20,254 

139,670 

56,455 

123,927 

33,772 
19,113 

chosen 
1,712 
2,629 

""79",642 
"§5,515 

"59",772 
"19,756 

"59^568 
54,389 

"  11,690 
26.568 
17,010 

"43^600 
59,955 

"44^112 
12,384 

68,230 

38,669 

79,269 

by  Legist 

59,034 

10.752 

23,849 

50,446 

278,232 

208.011 

171,327 

78,322 

97,156 

75,135 

66,300 

71.981 

150,063 

166,534 

72,962 

52,605 

145,029 

31,916 

10,383 

41,539 

103,517 

489,207 

108,417 

330,698 

15,206 

384,122 

15,787 

91,870 

89,566 

44,800 

44,092 

95,558 

42,698 

130,668 

170,232 
97,029 

?, 

""2;738 
lature. 

289 
47 

3 
4 

19 

155,800 

5 

fi 

774 

378 

36 

122,156 
24,133 

7 

926 

46,772 

8 

180.534 
554.493 
431,070 
292  463 

9 
10 
11 

1.971 

"M.igi 

32,511 

""4',627 
15,814 

"4b'.42.3 
15,542 
21,780 

17,233 
9,533 
9,001 
7.776 
1,914 

141 

"'36 
110 

818 

286 
'"23 

12 
13 
14 

Kansas 

Kentucky 

Louisiana:!: 

Maine 

Maryland 

Massachusetts 

Mictiigan 

Minnesota 

Mississippi ... 

Missouri    

Nebraska 

Nevada 

N.  Hampshire 
New  Jersey... 
New  York.... 
North  Carolina 
Ohio 

124,133 
259,6(18 
145,643 
116,786 

15 

663 
33 

779 
9.060 
2.311 

16 
17 

18 
19 
20 

10 

84 

766 

72 

""7i 

163,804 
259,703 
317,526 
124,144 
164,778 

21 
22 
23 
94 

"  10^326 
1,075 
2,954 

3.498 
2,320 

""76 

712 

1.987 

64 
1,599 

97 
117 

351,765 
53.506 
19.691 
80.124 

220.234 
1,017,3:» 

233,844 

25 
26 
27 

43 
2,359 

.l",828 

2*2 

2,747 

547 

9,375 

4,947 

964 

8,057 
510 

7.187 
68 

1.636 

76 

658  649 

29 

Oregon 

Pennsylvania 
Rhode  Island. 
South  Carolina 

Tennessee 

Texas 

Vermont 

Virginia  

WesfVirginia. 
Wisconsin 

Total 

Tilden's  Major 

29.865 

30 
31 
3i> 

1.319 
60 

83 

758.8H9 

26,627 

182  776 

33 

222.732 

34 

149.555 
64,346 

S5 

23,838 

36 

235,228 

37 

38 

""5^205 

1,373 
1.509 

"'27 
9,522 

2,636 

100,52e 
256,131 

4,284,757 
ity 

545,672 
156,909 

4,033.950 

248,501 

81.740 

8,412,605 

♦Scattering  includes  the  votes  of  the  anti-Masonic  and  American  Alliance 
tickets. 

tReturning  Board's  count,  Nov.  28, 1876.  A  majority  of  94  to  1,197  was  claimed 
for  Tilden  by  the  Democrats,  and  the  opinion  of  ihe  Supreme  Court  of  Florida 
gave  Tilden  94  majority. 

^Returning  Board's  count.  The  figures  on  the  face  of  the  returns,  when  opened 
by  the  Board,  are  claimed  to  have  been:  Tilden.  82,326;  Hayes,  77,023.  Tilden's 
majority,  5,303. 

§Plurality  over  Hayes. 


PART    SECOND. 


CHAPTER  I. 


THE  EIGHTS  OF  MAN. 

Every  history  and  traditionary  account  of  creation 
agree  in  establishing  the  unity  of  man,  that  the  whole 
human  race  is  of  one  degree,  or  grade;  and  consequently 
that  "  all  men  are  born  free  and  equal  in  respect  to  nat- 
ural rights,  in  the  same  manner  as  if  posterity  had  been 
continued  by  creation  instead  of  generation^ 

Paine,  in  "Natural  Rights  of  Man,"  says: 

"Natural  rights  are  those  which  always  appertain  to  maa  in  right 
of  his  existence.  Of  this  kind  are  all  the  intellectual  rights,  or  rights 
of  the  mind,  and  also  all  those  rights  of  acting  as  an  individual  for 
his  own  comfort  and  happiness,  which  are  not  injurious  to  the  rights 
of  others. — Civil  rights  are  those  which  appertain  to  man  in  right  of 
his  being  a  member  of  society.  Every  civil  right  has  for  its  founda- 
tion some  natural  right  pre-existing  in  the  individual,  but  to  which 
his  individual  Ipower  is  not,  in  all  cases,  sufficiently  competent.  Of 
this  kind  are  all  those  which  relate  to  security  and  protection. 

"  From  this  short  review,  it  will  be  easy  to  distinguish  between  that 
class  of  natural  rights  which  man  retains  after  entering  into  society, 
and  those  which  he  throws  into  common  stock  as  a  member  of  so- 
ciety. 

"The  natural  rights  which  he  retains,  are  all  those  in  which  the 
power  to  execute  is  as  perfect  in  the  individual  as  the  right  itself. 
Among  this  class,  as  is  before  mentioned,  are  all  the  intellectual 
rights,  or  rights  of  the  mind;  consequently,  religion  is  one  of  those 
rights.  The  natural  rights  which  are  not  retained,  are  all  those  in 
which,  though  the  right  is  perfect  in  the  individual,  the  power  to 
execute  them  is  defective.  They  answer  not  his  purposes.  A  man 
by  natural  right,  has  a  right  to  judge  in  his  own  cause;  and  so  far  as 
the  right  of  the  mind  is  concerned,  he  never  surrenders  it:  but  what 
availeth  it  him  to  judge,  if  he  has  not  power  to  redress  it?    He  there- 

14  209 


210  LABOR    AND    FINANCE   REVOLUTION. 

fore  deposits  this  right  in  the  common  stock  of  society,  and  takes 
the  arm  of  society,  of  which  he  is  a  part,  in  preference  and  in  addi- 
tion to  his  own.  Society  grants  him  nothing.  Every  man  is  a  pro- 
prietor in  society,  and  draws  on  the  capital  as  a  matter  of  right. 

"  From  these  premises,  two  or  three  certain  conclusions  will  follow. 

"  1st,  That  every  civil  right  grows  out  of  a  natural  right ;  or,  in  other 
•words,  is  a  natural  riglit  exchanged. 

"2d,  That  civil  power  properly  considered  as  such,  is  made  up  of 
the  aggregate  of  that  class  of  the  natural  rights  of  man,  which  be- 
comes defective  in  the  individual  m  point  of  power,  and  answers 
not  his  purpose,  but  when  collected  to  a  focus,  becomes  competent  to 
the  purpose  of  every  one. 

"3d,  That  the  power  produced  by  the  aggregate  of  natural  rights, 
imperfect  in  power  in  the  individual,  cannot  be  applied  to  invade 
the  natural  rights  wliich  are  retained  in  the  individual,  and  in  which 
the  power  to  execute  is  as  perfect  as  the  right  itself" 

Deprived  of  these  rights  by  the  arbitrary  powers  of 
unjust  law,' the  subjects  of  despotism  and  monarchical 
governments  become  slaves,  and  serfs,  to  the  extent  that 
these  rights  are  denied  them. 

To  escape  the  slavery  of  despotism,  the  early  settlers 
of  America  left  the  land  of  their  birth  and  oppression, 
traversed  the  wilderness  of  waves,  and  made  their  homes 
among  the  wild  men,  and  the  wild  beasts  of  the  new 
world.  But  oppression  followed  them.  Like  a  beast 
of  prey  it  smelled  their  blood  afar  off",  and  followed  their 
trail.  They  cheerftilly  bore  the  trials  and  hardships  of 
the  wilderness,  but  when  in  addition  to  these,  their  op- 
pressors placed  upon  their  necks  the  yoke  they  had  made 
themselves  exiles  to  escape,  it  was  more  than  nature 
could  endure. 

Relying  upon  their  own  strength,  the  justice  of  their 
cause,  and  the  aid  of  Divine  power,  they  promulgated 
to  the  world  the  great  charter  of  natural  and  civil  rights 
upon  which  our  Government  is  claimed  to  be  estab-- 
lished.  They  took  the  ground  that  all  power  exercised 
over  a  people  must  have  some  beginning,  or  origin.  It 
must  be  either  delegated  or  assumed.     There  are  no 


THE    RIGHTS   OF    MAN.  211 

Other  sources.  All  delegated  power  is  trust,  and  all 
assumed  power  is  usurpation.  The  bill  of  rights  pro- 
claimed by  our  fathers  contained  the  following: 

I.  That  men  are  born  and  should  always  continue 
free  in  respect  to  their  natural  rights. 

II.  That  the  people  is  essentially  the  source  of  all 
sovereignty,  nor  can  any  individual,  or  any  body  of  men, 
be  entitled  to  any  authority  which  is  not  especially  de- 
rived from  the  people. 

III.  That  the  just  powers  of  Government  are  derived 
from  the  consent  of  the  governed. 

IV.  That  political  liberty  consists  in  the  power  and 
right  of  doing  anything  that  does  not  injure  another. 

V.  That  law  should  be  an  expression  of  the  will  of 
the  people. 

These  glorious  principles,  these  inalienable  gifts  of 
God  to  man,  were  wrenched  from  the  Lion's  jaws  by  our 
fathers  after  seven  long  years  of  bloody  struggle,  and 
they,  soon  after,  made  them  over,  assigned  and  be- 
queathed them  to  their  posterity  forever  as  a  joint 
inheritance,  in  the  following  words: 

''''For  the  purpose  of  forming  a  raore  perfect  Union  j 
to  establish  justice;  to  insure  domestic  tranquility,  to 
promote  the  general  welfare,  and  to  transmit  to  pos- 
terity the  hlessings  of  liberty,  do  ordain  and  establish 
this  Constitution,''''   etc. 

Those  old  patriot  heroes  believed  that  men  possessed 
rights,  as  well  as  kings.  That  all  men  are  created  equal, 
and  are  endowed  with  certain  inalienable  rights;  that 
among  these  rights,  are  life,  liberty  and  the  pursuits  of 
happiness,  and  that  Governments  are  established  among 
men  to  secure  these  rights.  Not  for  personal  aggrand- 
izement, not  to  oppress  the  people,  not  to  create  and 


212  LABOR   AND    FINANCE    REVOLUTION. 

foster  grinding  and  robbing  monopolies,  not  to  deprive 
a  portion  of  humanty  of  their  natural  rights  that  a  fa- 
vored few  maj'  ^njoy  a  double  portion — not  to  deprive 
men  of  their  birthrights  and  blessings  bequeathed  to 
them  by  a  benevolent  Creator. 

They  further  declared  that  w-.enever  any  form  of 
Government  became  destructive  to  these  ends,  it  is  the 
rig  fit  of  the  people  to  alter  or  aholish  it! 

The  aristocracies  of  the  Old  World  have  robbed  the 
masses  of  every  natural  right  except  the  right  to  toil, 
suiSfer,  and  die. 

The  poor  of  Ireland  and  India  suffer  and  starve,  not 
because  there  are  not  fertile  lands  and  abundant  har- 
vests, but  because  the  ungodly  laws  of  Britian  have 
robbed  the  people  of  their  right  to  the  soil,  and  given 
to  an  aristocratic  few  all  the  sustenance  from  the  bosom 
of  our  common  mother  earth,  and  being  protected  in 
this  robbery  by  the  arbitrary  power  of  the  Government, 
the  poor  landless  tenants  are  compelled  to  toil  a  life 
time  for  the  crumbs  which  fall  from  the  table  of  their 
lordly  robber  brothers. 

Man  inherits  from  his  Creator  certain  natural  rights, 
among  which  are: 

The  control  of  his  own  body,  labor,  skill  and  genius. 

All  the  powers  of  his  body  and  mind,  and  the  right 
to  exercise  them  in  any  manner  he  sees  fit,  provided  he 
does  not  interfere  with  the  rights  of  any  other  individual. 

He  has  an  absolute  right  to  his  own  time,  and  cannot 
rightfully  be  the  slave  (jf  another.  These  are  his  indi- 
vidual rights,  which  cannot  be  justly  claimed,  controlled 
or  usurped  by  another. 

Then  man  inherits  in  common  with  his  brother  man, 
the  means  of   Life,  Liberty  and   Happiness,  and  the 


THE    EIGHTS    OF    MAN.  '213 

facilities  to  fulfill  his  destiny,  and  accomplish  his  mis- 
sion  on  earth. 

The  air  to  vitalize  the  life-currents  of  his  body,  is  his 
in  common  with  all  animated  nature,  and  its  monopoly 
by  any  man,  or  set  of  men,  under  cover  of  law,  would  be 
legalized  murder,  and  the  masses  who  had  not  the  means 
to  purchase  their  breath,  would  be  justified  in  putting 
to  death  the  monopolizer,  or  in  abolishing  the  Govern- 
ment creating  it;  in  self  defense. 

Light  and  water  are  also  man's  common  heritage,  and 
no  man  has  a  moral  right  to  deprive  another  of  these 
life-giving  elements.  The  day  for  work,  and  the  night 
for  rest — the  seasons  as  they  come  and  go,  are  the  joint 
inheritance  of  humanity. 

But  the  most  important  item,  perhaps,  in  the  inven- 
tory of  man's  natural  rights,  is  his  inalienable  right  to 
occupy,  till  and  enjoy  the  fruits  of  his  pro-rata  of  God's 
green  earth,  a  right  which  is  more  fully  discussed  in 
the  following  chapter. 


CHAPTER  11. 
THE  LAXD  QUESTION. 

"  I  see  no  reapon  or  natural  right  why  a  deed  upon  parchment  should  convey 
the  domain  of  land."    — Blackstonb. 

One  of  the  most  momentous  questions  of  the  day,  a 
question  that  is  destined  in  tlie  near  future  to  shake 
civilization  from  center  to  circumference,  is  the  Land 
Question. 

What  this  question  is,  is  well  defined  by  that  emi- 
nent political  economist,  John  G.  Drew,  in  "Land  Labor 
and  Money  in  History." 

"  The  term  Land  Reform  as  it  is  now  currently  used, 
defines  a  great  and  rapidly  ^rowing  demand  that — 

"•First,  No  more  land  shall  be  occupied  by  a  person  or 
family  than  he  or  they  can  and  will  properly  cultivate; 

^'Second,  That  all  control  of  lands  shall  be  vested  in  the 
State  as  trustee  for  its  citizens,  thus  debarring  all  and 
any  from  proprietorship  of  land,  and  confining  their 
ownership  Iq  the  jproducts  tliereof  i\\\^\\\Q  improvements 
thereon  resulting  from  their  enterprise  and  industry. 

"That  such  conditions  w^ere  recognized  in  the  Theoc- 
racy of  the  Jews  under  the  Mosaic  dispensation  is  clearly 
demonstrated  by  the  Fiats  of  Jehovah  that  '  the  land 
should  not  be  sold  forever,'  and  the  supplementary  leg- 
islation fixing  every  fiftieth  year,  as  a  sabbath  of  sab- 
baths, a  jubilee  of  years  when  leases  should  be  renewed 
or  cancelled,  the  bonds  of  the  oppressed  should  be  bro- 
ken and  the  enslaved,  whether  by  debtor  other  bondage, 

214 


THE    LAND    QUESTION.  215 

should  go  free.  Every  reader  of  the  Bible  knoAvs  that, 
and  every  priest  and  clergymen  can  explain  the  same. 

"All  eminent  historians  admit  the  antiquity  of  the 
teaching,  and  no  legalist  who  values  his  reputation, 
Blackstone  included,  dare  deny  the  entire  logic  of  the 
position. 

"  Knowing  the  utter  im potency  of  efforts  honestly  and 
logically  directed  to  successfully  combat  the  arguments 
of  those  advocating  land  reform,  the  predatory  classes 
have  recourse  to  their  only  remaining  weapon,  black- 
guarding and  abuse;  exactly  as  the  skunk,  not  endowed 
by  nature  with  nol>ler  weapons  of  off'ense  and  defense, 
hurls  his  execrable  tilth  at  his  enemy,  which  is,  by  sensi- 
tive people  and  animals,  more  carefully  avoided  than  the 
more  deadly  but  less  dirty  weapons  of  nobler  creatures. 

"  Contrary  to  the  rules  which  govern  other  professional 
gamblers,  they  play  their  best  or  worst  card  first,  and 
slap  the  face  of  their  intended  victim  with  the  charge 
that  he  is  an  agrarian. 

"  In  a  large  majority  of  instances  this  is  enough  to 
silence  the  audacious  iconoclast,  who  supposes  from  the 
self-satistied  and  triumphant  tone  with  which  the  shot  was 
fired,  that  it  is  some  newly  invented  and  intensely  con- 
centrated missive,  containing  the  sublimated  essence  of 
every  sin  possible  to  imagine. 

''  It  is  possibly  more  deeply  penetrative  and  devastative- 
ly  explosive  projectile  than  its  old  fashioned  prototype, 
"you  are  an  abolitionist,"  which  in  the  past  generation 
knocked  down  and  kept  down  many  a  noble  fellow,  until, 
when  the  time  arrived,  he  sprang  to  his  feet  to  face  the 
more  deadly  but  less  detestable  missives  of  the  bomb  and 
bullet  in  defense  of  his  cherished  thoughts. 

"Let  us  pick  up  and  examine  that  dreadful  term  and 
see  what  it  means  and  what  it  is  made  of 


^16  LABOR    AND    FINANCE    REVOLUTION. 

"  Niebuhr,  the  eminent  German  historian  of  Rome,  an- 
tagonizing the  great  theory  that  farming  was  not  proper 
for  freemen,  says: 

"  '  To  what  more  than  her  system  of  colonization,  a  branch  of  her 
agrarian  scheme,  was  she  [Rome]  indebted  for  the  security  and 
extension  of  her  froutier  ?  A  host  of  warriors  were  trained  up  ready 
to  take  the  field  at  the  call  of  their  country,  yet  no  less  ready  to  ex- 
change the  sword  for  the  plowshare. 

" '  it  is  not,  however,  in  a  military  point  of  view  that  the  value  of 
these  institution*  is  evident.  They  were  of  no  less  domestic  import- 
ance in  providing  against  the  phenomena  so  frequently  met  with  in 
great  cities  of  the  most  squalid  indigence  by  the  side  of  the  most 
profuse  extravagance.' 

''  Or  as  Yictor  Hugo  would  say,  monstrous  oppulence 
and  monstrous  poverty. 

"  Considering  that  Xiebuhr  ranks  as  amongst  the  most 
conservative  of  historians,  his  testimony  is  of  peculiar 
value. 

"  Dr.  Thomas  Arnold,  very  pleasantly  known  to  many 
as  the  much-loved  principal  of  the  Rugby  School  when 
Thomas  Plughes  was  a  pupil  therein,  says  of  the  first 
land  reform  known  in  Roman  history: 

"'By  a  strange  compensation  of  fortune  the  first  Roman  whose 
greatness  is  really  historical  is  the  man  whose  deeds  no  poet  sang  and 
whose  memory  the  early  annalists,  repeating  the  language  of  the  party 
who  destroyed  him,  have  branded  with  the  charge  of  Treason  and 
attempted  Tyranny.  This  was  Spurius  Cassius.  He  procured,  al- 
though at  the  price  of  his  own  life  [in  the  fifth  century  before 
Christ],  the  enactment  of  the  first  agrarian  law.' 

"  Dr.  Arnold  notes  as  reigning  not  long  afterward  '  the 
good  King  Servius  TulliusI;  and  quotes  him  approv- 
ingly as  an  'agrarian'  who  divided  among  the  common 
people  the  public  lands. 

^  In  or  about  the  year  468  before  Christ,  new  consuls 
were  appointed  and  they  were  disposed  to  execute  the 
Agrarian  law  of  Spurius  Cassius  and  settle  the  people 
on  the  unused  lands.  To  this  they  were  strenuously  op- 
posed by  the  patrician  classes  who,  as  before  noted,  had 


THE    LAND    QUESTION.  217 

assassinated  the  author  of  the  hiw.  For  two  years  a 
violent  political  conflict  raged  which  was  only  abated 
by  the  ravages  of  a  devastating  pestilence  perhaps  in- 
duced and  certainly  intensified  by  popular  suffering. 

"  On  abatement  of  the  pestilence  the  Land  Question 
again  came  up  for  consideration,  and,  strange  to  say, 
was  not  supported  by  the  Democratic  party.  The  most 
charitable  historians  account  for  this  sudden  lethargy 
by  supposing  that  the  people,  educated  by  the  prolonged 
discussion,  deemed  that  simply  freedom  of  the  public 
lands  was  but  too  partial  a  reform  and  demanded  more 
or  nothing. 

"  No  ])rogress  was  made  for  nearly  seventy  years,  when 
in  399,  before  Christ,  a  revival  of  tlie  agrarian  law  was 
proposed  by  the  people's  tribunes,  which  was  successfully 
opposed  by  the  aristocracy.  The  people,  by  advice  of 
the  tribunes,  then  refused  to  pay  taxes^  which  is,  per- 
haps, the  earliest  instance  of  withholding  supplies  to 
kill  vicious  legislation. 

"Thirty-one  years  passed  over  without  progress,  but 
then  (before  Christ,  368)  Licinius  was  elected  Tribune. 

"  He  introduced  three  laws,  which  are  known  as  the 
Licinian  code,  but  although  often  referred  to  their  texts 
seem  to  have  been  studiously  suppressed. 

"The  first  is  described  as  a  law  to  relieve  the  people 
from  the  overwhelming  and  increasing  pressure  of  debt, 
and  provided  that  whatever  had  been  paid  on  a  debt  in 
interest,  should  be  deducted  from  the  principal, 

"Dr.  Arnolcl,  in  commenting  on  this  law,  says: 

" '  If  the  rate  of  interest  had  been  high,  and  if  a  debt  had  been  long 
standing,  the  sum  paid  in  interest  would  not  only  have  equaled,  but 
must  in  some  cases  have  actually  exceeded  the  amount  of  tlie  prin- 
cipal, so  that  the  creditor,  far  from  having  anything  more  to  receive, 
would  rather  have  had  something  to  refund.' 


218  LABOR    AND    FINANCE    REVOLUTION. 

"  The  Second  Law  was  claimed  to  be  necessary  to  save 
tlie  people  when  once  out  of  debt  from  all  need  and 
apology  for  getting  into  debt  again,  and  provided  that 
citizens  should  be  granted  lands  from  the  public  domain 
(ager  publicus)  restricting  individual  occupancy  to  500 
Jugera — about  300  acres  each. 

"  The  Third  Law  provided  that  the  commons  should 
be  placed  politically  on  a  level  with  the  patricians. 

"  As  might  have  been  expected,  the  mere  proposal  of 
these  laws  raised  a  terrific  row  among  the  patrician 
classes,  who  by  trying  to  prevent  the  reading  of  them 
to  the  people  (there  were  no  printing  presses  then)  and 
otherwise  obstructing  legislation  and  retarding  intelli- 
gence, literally  and  actually  performed  the  same  drama 
in  Rome  2,248  years  ago  that  is  now  acted  by  Speaker 
Randall  in  the  American  House  of  Representatives  in 
ignoring  the  people's  representatives,  and  the  subsidized 
press  co-operate  in  their  Conspiracy  of  Silence  for  the 
repression  of  current  history  and  stifling  proposed  legis- 
lation. 

"•  For  five  years  this  struggle  continued.  Government 
was  suspended,  and  historians  have  not  yet  ceased  to 
wonder  that  society  was  not  extinguished. 

"  At  length,  by  Patrician  influence,  Marcus  Furius 
Camillus  was  made  Dictator,  and  he  instantly  sum- 
moned all  citizens  capable  of  bearing  arms  to  rally 
around  his  standard;  but  his  orders  were  utterly  disre- 
garded, and  the  Senate,  to  allay  the  popular  fury,  called 
on  him  to  resign  his  dictatorship,  which  he  did,  and  died 
two  years  later  of  the  pestilence  which  the  miseries  of 
the  people  had  created. 

"The  Liciiiian  code  then  became  the  law  of  Rome, 
and  in  commemoration  of  so  grand  an  event  as  the  uni- 


THE    LAND    QUESTION.  210 

fication  of  the  Roman  people,  the  affirmation  of  equality 
and  fraternity,  a  new  temple  was  erected  on  the  Capi- 
toline  hill  and  dedicated  to  Concord." 

For  the  information  of  the  general  reader,  as  well  as 
to  place  on  the  proper  page  of  history  a  record  of  the 
views  and  arguments  of  that  large  and  rapidly  increas- 
ing class  who  are  battling  for  ''  Land  Reform,"  or  the 
"  emancipation  of  the  soil  from  the  bondage  of  ownership 
in  man,"  I  append  the  following: 

"The  soil  is  a  free  gift  of  God  to  all  His  creatures  in  common  ;  each 
individual  has  as  valid  a  right  and  title  to  all«  the  soil  that  is  neces- 
sary to  the  subsistance  of  himself  and  family  as  he  has  to  the  air,  the 
water,  and  the  light  of  day. 

"  They  deny  the  right  of  Governments  to  barter  away  to  land  monop- 
olists the  patrimony  of  unborn  generations.  If  the  three  or  four  mil- 
lions of  people  who  inhabited  this  country  when  the  Republic  was  es- 
tablished held  sutticient  land  for  their  own  use,  who  gave  them  the 
right  to  convey,  or  the  Government  to  receive  as  merchandise  the  soil 
which  is  now  demanded  for  50,000,000  souls  ? 

"They  had  the  same  right  to  barter  away  the  liberties  of  posterity 
as  to  compel  unborn  millions  to  serve  landlords  ten  or  fit'teen  of 
the  best  years  of  their  lives  to  redeem  their  confiscated  patrimony. 

"Was  the  unoccupied  soil  free  as  God  designed  it,  all  the  labor  of 
the  individual  would  be  his  own. 

"How  is  it  now  ?  Suppose  a  young  man  is  compelled  to  purchase 
a  farm  of  160  acres,  and  to  pay  some  land  robber  $10  per  acre.  This 
would  amount  to  $1,600,  and  this  sum  he  must  earn  by  the  sweat  of 
his  brow. 

"  It  will  take  him  ten  years,  with  close  economy,  to  save  up  this 
amount. 

"  Now,  this  young  man  has  been  the  land  robbers'  slave  ten  years. 
He  has  been  deprived  of  ten  years  of  his  liberty  and  pursuit  of 
happiness,  to  purchase  the  freedom  to  enjoy  his  own  rightful  heritage. 
The  land  robbers  might  just  as  well  have  held  him  in  slavery  ten  years 
by  a  contract  with  the  Government  before  he  was  born,  and  then  set 
him  free  to  go  and  claim  his  own,  as  to  make  him  serve  ten  years  to 
redeem  his  own.  It  may  be  said  that  to  deprive  the  land  monopolies 
of  their  surplus  acres,  would  be  interfering  with  vested  rights.  So 
the  slave oicners  said  iphen  the  Oovernment  restored  to  the  bondmen  their 
rights  to  life,  liberty  and  the  pursuits  ofliappiness.  So  says  every  man 
who  is  called  upon  to  yield  up  wrongfully-obtained  wealth.  There 
are  no  rights  in  icrongs,  vested  or  otherioise. 

"  The  title  to  stolen  goods  vests  in  the  real  owner,  it  matters  not  how 
many  hands  they  have  passed  through,  or  how  great  a  price  was  paid 
the  thief.  Unborn  souls  cannot  rightfully  be  deprived  of  their  patri- 
mony by  the  wrongs  of  their  predecessors. 


220  LABOR    AND    FINANCE    REVOLUTION. 

"  Every  man  should  be  regarded  as  equally  eatitled  to  all  the  free 
gifts  of  God  to  His  creatures,  the  soil  included.  Each  man  inherits, 
in  common  with  the  universal  brotherhood,  these  blessings.  Like 
every  other  element  of  nature,  the  soil  was  made  for  humanity. 

"  It  is  proper  for  the  Government  to  hold  it  in  trust  for  those  of  the 
present  and  future  generations  who  may  need  to  occupy  and  till  it, 
but  as  an  article  of  merchandise  it  was  never  intended  in  the  economy 
of  nature,  nor  is  it  permitted  by  the  statutes  of  the  Divine  law. 

"  I'he  merchandise  of  men  should  be  limited  to  the  productions  of  their 
hands  and  skill.  The  soil  should  be  free.  The  improvements  a  man 
puts  upon  land  are  his  own.  Those,  he  can  sell,  or  dispose  of,  but 
god's  son,,  never! 

"  3Ian  will  never  be  free  until  the  soil  from  which  he  derives  suste- 
nance is  free. 

"Thirty  millions  of  people  in  America  are  houseless  and  homeless. 
They  are  trespassers  on  every  sod  upon  which  they  place  their  feet, 
except  in  tlie  public  highway,  while  huge  monopolies  and  giant  cor- 
porations hold  by  gift  from  the  Government  sufficient  land  to  give 
every  family  in  the  nation  a  farm  and  the  means  of  subsistanee. 

"  Our  homestead  law,  it  is  true,  gives  to  every  head  of  a  family  160 
acres  if  he  will  occupy  it;  but  the  huge  grants  of  land  to  railroa'd  and 
other  corporations  have  pushed  individual  homesteads  so  far  into  the 
wilderness,  that  a  family  is  compelled  to  exile  itself  from  civilization 
to  avail  itself  of  the  Government's  generosity(  ?).  The  earth  is  the 
Lord's,  and  He  deu.ands  it  for  His  children. 

"  He  has  never  parted  with  the  title  to  a  foot  of  it,  and  He  com- 
mands tiie  millions  of  wandering,  law  made,  '  trespassers  '  to  go  and 

CLAIM  THEIR  INHERITANCE! 

"  Man's  rights  to  occupy,  till,  and  enjoy  the  products  of  any  unoc- 
cupied soil  of  earth,  is  as  valid,  and  as  inalienable,  as  his  rights  to 
live  and  breathe,  and  no  man  possesses  a  natural  right,  nor  have  Gov- 
ernments the  mornl  right  to  confirm  in  man  the  ownership,  or  con- 
trol of  more  soil  than  he  can  till  and  is  necessary  for  his  and  his 
family's  subsistanee,  while  there  is  one  landless  soul  on  earth." 

These  are  the  afgumeuts  of  the  land  fefomners. 

From  an  Etiropean  stand  point,  especially  England 
and  Ireland,  where  millions  of  God's  poor  have  been 
robbed  of  their  soil,  where  millions  of  acres  are  used  as 
sporting  and  play  grounds  for  the  royal  robbers,  these 
arguments  have  much  force. 

In  America,  the  condition  of  the  landless  is  not  so  bad 
at  present,  but  no  one  can  deny  the  fact  that  the  tendency 
and  ultimate  results  of  the  specie  basis,  debt  and  usury 
systems  which  we  have  adopted  is  to  concentrate  landed 
estates,  as  well  as  other  capital  in  the  hands  of  the  few. 


THE    LAND    QUESTION.  221 

Pliney  says,  •'  The  colossal  fortunes  which  ruined  Italy 
and  caused  the  downfall  of  Rome,  were  due  to  the  con- 
centration of  estates  through  usury  or  interests 

"  USURY    DID    THIS,    AND    COINED    MONEY." 

Many  suppose  that  the  "  Land  Question,"  or  Land 
Reform  is  a  blow  aimed  at  the  large  agricultural  interest 
of  the  West — a  blow  aimed  at  those  enterprising  and 
thrifty  farmers  who  hold  titles  to  several  hundred  acres 
of  soil,  and  produce  a  large  surplus  of  farm  crops.  This 
is  a  mistake.  The  movement  is  to  protect  this  very  class 
of  men  in  the  enjoyment  of  their  estates. 

The  policy  which  the  Land  Reformers  are  fighting 
against,  if  allowed  to  prevail,  will  rob  every  farmer  in 
the  West  of  his  lands,  as  surely  as  the  lands  of  a  million 
English  farmers  passed  into  the  hands  of  30,000  of  the 
nobility  through  a  similar  policy.  This,  the  money 
power  fully  understand,  and  through  their  organ,  the 
New  York  Times,  have  given  notice  to  the  farmers  of 
the  country  to  prepare  for  the  event.  They  first  dis- 
tressed the  farmers  by  depriving  the  country  of  money, 
which  reduced  values,  depressed  prices,  and  made  it  im- 
possible for  them  to  pay  their  taxes  and  defray  current 
expenses  from  the  proceeds  of  the  farm. 

"  COME  INTO  MY  PARLOE  "  SAID  THE  SPIDER  TO  THE  FLY. 

On  the  12th  day  of  August,  1877,  referring  to  the  far- 
mer's hard  lot,  the  New  York  Times  said : 

"Is  there  a  way  of  deliverance?  There  seems  to  be 
but  one  remedy,  and  that  is  a  slow  one,  and  not  im- 
mediately eftective.  To  reach  it  both  farmers  and  cap- 
italists need   to  be  educated   to  it,  but   it  seems  to  be 


222  LABOR    AND    FINANCE    REVOLUTION. 

inevitable  that  it  must  come  about  in  course  of  time.  It 
is  a  change  of  owaership  of  the  soil,  and  the  creation  of 
a  class  of  land-owners  on  the  one  hand,  and  of  tenant 
farmers  on  the  other,  something  similar  in  both  cases,  to 
what  has  long  existed  and  now  exists,  in  the  older  coun- 
tries of  Europe,  and  similar,  also,  to  a  system  that  is 
common  in  our  own  State  of  California, 

"  Those  farmers  who  are  land  poor,  must  sell,  and 
hecome  tenants  in  place  of  ovjners  of  the  soil.  The 
hoarded,  idle  capital  must  he  invested,  in  these  lands 
and  turned  over  to  the  poor  farmers,  who  will  at  once 
he  set  upon  their  feet — not  to  go  and  loaf  about  towns 
and  villages,  spending  their  money  while  it  may  last, 
but  to  buy  with  his  money  stock,  fertilizers,  implements 
and  machines,  and  go  to  work  to  cultivate  the  soil  profit- 
ably. Instead  of  their  money  being  sunk  and  dead  in 
unproductive  acres,  it  will  be  invested  in  cows,  sheep, 
swine  of  improved  breeds;  in  guano  and  fertilizers,  b}" 
which  the  crops  will  be  doubled  or  trebled.  It  will  then 
become  active  and  productive,  and  capable  of  doubling 
itself  within  the  year.  The  farmer  will  be  relieved  of 
the  burden  of  a  bad  investment  on  which  lie  now  makes 
no  interest,  and  his  money  will  be  placed  where  it  will 
do  the  most  good.  He  will  at  once  be  lifted  from  pov- 
erty to  financial  ease,  and  in  place  of  an  unsalable  farm 
he  will  have  to  show  for  his  money  some  propert}'^  that 
will  realize  all  that  it  is  worth  at  a  public  sale  at  24 
hours'  notice. 

"  Everything  seems  ripe  for  the  change.  Half  the 
farms  in  the  country  are  ready  to  be  sold  if  buyers 
would  only  appear,  and  hundreds  that  can  now  be  bought 
for  less  than  their  value  20  or  30  years  ago,  need  only 
some  judicious  outlay  to  make  them  as  productive  as 


THE    LAND    QUESTION.  ^  223 

ever.  Few  farmers  can  hope  to  provide  their  sons  witli 
farms  of  their  own,  and  there  is  no  place  for  these  young 
men  in  the  over-crowded  cities.  But  to  stock  a  rented 
farm  is  not  so  difficult  a  matter  for  a  father  intent  on 
starting  a  son  in  life.  This  would  be  easy  to  do  if  the 
farm  could  be  rented  on  a  long  and  satisfactory  lease. 
But  before  this  can  be  done  the  owner  of  the  land  must 
hold  it  as  a  permanent  investment,  and  not  as  a  property 
to  be  offered  for  sale  to  the  iirst  comer.  When  farm 
land  is  so  held  by  the  owner,  there  will  be  some  prob- 
ability, if  not  certainty,  that  it  will  be  permanently  im- 
proved, and  then  such  property  will  be  largely  sought 
for  by  tenants  who  will  be  able  and  willing  to  rent  it  on 
long  leases  and  cultivate  it  in  a  more  productive  and 
profitable  manner  than  farms  are  now  worked.  And 
then  will  begin  a  new  era  in  American  agriculture,  and 
one  that  seems  to  be  very  desirable." 

It  is  to  defeat  this  deep  laid  and  damnable  plot  of  the 
money  power,  and  prevent  the  rich  few  from  gobbling 
up  the  soil  of  America,  as  it  has  been  gol)bled  up  in 
England  and  Ireland — it  is  to  save  our  farmers  from 
serfdom,  and  our  free  soil  from  the  bondage  of  monopoly, 
that  the  Land  Reform  movement  is  pushed  to  the  front. 


CHAPTER  III. 

DEBT  AND  USURY. 

"  Owe  no  man  anything,"  was  the  injunction  of  a 
wiser  and  better  man  than  ancient  or  modern  Shy  lock. 
Debt  is  slavery,  which  the  law  should  not  recognize. 

If  a  man  voluntarily  bind  himself  to  his  neighbor,  it 
is  his  right — his  liberty  is  his  own  property;  but  the  right 
of  the  neighbor  to  hold  such  liberty  a  moment  against  the 
will  of  the  owner,  should  not  be  recognized  by  law. 

We  would  prevent  the  necessity  of  debt  and  usury,  by 
an  ample  supply  of  exchange  medium  to  do  a  cash  bus- 
iness. We  would  abolish  the  legal  relations  of  debtor 
and  creditor,  by  repealing  all  laws  for  the  collection  of 
debt,  made  after  a  certain  period.  It  will  be  said  that 
such  a  volume  of  money  will  render  the  currency  worth- 
less. We  deny  it,  and  challenge  reasonable  proof.  There 
are  two  great  classes  in  this  country  who  have  use 
for  an  exchange  medium.  The  producers,  of  which 
there  are  millions,  who  receive  for  their  products  the 
current  money  of  account.  The  volume  of  their  pro- 
ducts amounts  annually  to  about  $6,000,000,000.  There 
is  in  circulation  to  pay  for  this  enormous  product  but 
about  $600,000,000  of  currency,  or  one  .dollar  of  cur- 
rency for  ten  of  products.  This  deficiency  of  currency 
compels  products  to  move  slow^ly,  and  as  our  lines  of 
transportation  are  long,  causes  trade  of  all  kinds  to  be 
sluggish, depresses  prices,and  compels  enormous  inflation 
of  credits  as  a  substitute  for  money.     Cities,  counties, 

224 


DEBT   AND  USURY  225 

states,  corporations  and  individuals  are  obliged  to  antic- 
ipate future  incomes,  and  issue  instead,  their  interest- 
bearincj  obliirations. 

There  is  another  class  that  handle  these  $6,000,000,- 
000  of  products,  or  the  surplus  over  the  consumption  of 
the  producers. 

They  use  a  different  exchange  medium. 

They  are  the  bankers,  brokers,  and  great  interna- 
tional traders.  Their  medium  of  exchange  consists  of  the 
producers'  interest-bearing  obligations — bonds  and  mort- 
gages. Every  well  secured  debt  goes  to  inflate  the  v^ol- 
ume  of  their  currency. 

They  never  go  in  debt  or  pay  interest. 

They  have  no  need  of  it.  The  millions  upon  millions 
of  international  transactions  are  carried  on  with  the  use 
of  less  than  four  per  cent,  of  legal  tender.  The  debt 
system  is  their  main  dependence,  their  chief  stock  in 
trade. 

This  furnishes  them  an  inflated  medium  of  exchange, 
amounting  to  many  thousands  of  dollars  per  capita. 
The  less  money  the  people  have,  the  more  they  are 
obliged  to  go  in  debt,  and  the  more  they  go  in  debt, 
if  debts  are  well  secured,  the  larger  is  the  interest  in- 
come of  the  sharks,  and  the  more  their  currency  is  in- 
flated. 

Scarcity  of  money  among  the  people  aids  the  sharks 
in  more  ways  than  one. 

It  supplies  them  with  a  large  volume  of  currency. 
It  prevents  the  people  from  contracting  it  by  payment 
of  debts.  It  yields  them  a  large  interest  income.  It 
enables  them  to  control  the  market,  and  bull  and  bear 
prices,  to  suit  their  interest.  It  keeps  the  people  in 
slavery  to  them,  and  enables  them  through  the  immense 
15 


226  LABOR   AND    FINANCE   KEVOLUTION. 

wealth  they  reap,  to  control  elections,  dictate  legislation, 
and  thus  perpetuate  their  devilish  system  of  injustice  and 
robbery.  We  would  abolish  this  system  of  slavery.  We 
would  emancipate  humanity  from  the  bondage  of  debt 
and  usury.     It  is  the  mission  of  the  coming  revolution. 

AUTHORITIES   ON    USURY — TACITUS    ON   THE    SUBJECT. 

"  The  exaction  of  interest  for  the  loan  of  money  has 
been  one  of  the  greatest  evils  of  the  Roman  common- 
wealth." 

A    DETESTABLE    CUSTOM. 

The  practice  of  receiving  interest  on  money  is  detest- 
able, as  by  it  the  increase  of  our  fortune  arises  from  the 
money  itself,  and  not  by  the  employing  it  to  the  pur- 
pose for  which  it  was  intended." — Aristotle,  Book  II, 
Chap.  I. 

RECEIVE    NO    MORE    THAN    YOU    GIVE. 

Decretal,  Gratian  14:- -Quest.  14,  C.  1. — "  If  you  lend 
your  money  to  a  man  from  whom  you  expect  more  than 
you  gave,  not  money  alone,  but  any  other  thing,  whether 
it  be  wheat,  wine,  oil,  or  any  other  article;  if  you  expect 
to  receive  any  more  than  you  gave  you  are  a  usurer,  and, 
in  that  respect,  reprehensible,  not  praiseworthy." — St. 
Augustine  on  Psalm  xxxvi.     An.  405. 

COUNCIL  OF  Trent's  catechism. 

"  Whatever  is  received  above  the  principal  lent,  or 
that  capital  that  was  given,  whether  it  be  money  or  any- 
thing else  that  may  be  purchased  or  estimated  for  money, 
is  usury.     For  it  is  written  in  Ezekiel  xvi:    '  Thou  shalt 


DEBT   AND   USUKY.  227 

not  take  usury  and  increase.'  And  in  Luke  vi.  35,  our 
Lord  says:  '  Lend,  hoping  for  nothing  thereby.'  Even 
among  the  Gentiles  iisury  was  always  considered  a  most 
grievous  and  most  odious  crimed 

^'nothing   exceeds   in   barbarity  the   modern  system 

OF    usury." 

St.  Chrysostom.,  Horn.  5,  on  Matt.,  says:  ^'Nothing 
exceeds  in  harharity  the  modern  system  of  usury.  \\\- 
deed,  these  usurers  traffic  on  other  people's  misfortunes, 
seeking  gain  through  their  adversity;  under  the  pretence 
of  compassion,  they  dig  for  the  distressed  a  pit  of  mis- 
ery; under  the  pretence  of  giving  aid,  they  grind  the 
indigent;  extending  the  hand  to  receive  them  into  har- 
bor from  the  storm,  they  allure  him  only  to  be  ship- 
wrecked upon  shoals  and  shelves  of  an  unforeseen 
whirlpool." 

"There  is  nothing  really  more  monstrous  in  any  re- 
corded savagery  or  absurdity  of  mankind  than  that  Gov- 
ernments should  be  able  to  get  money  for  any  folly  they 
may  choose  to  commit  by  selling  to  capitalists  the  right 
of  taxing  future  generations  to  the  end  of  time.  All 
the  crudest  wars  inflicted,  all  the  basest  luxuries 
grasped  by  the  idle  classes,  are  thus  paid  for  by  the  poor 
a  hundred  times  over.  And  yet  I  am  obliged  to  keep 
my  money  in  the  funds  or  the  bank,  because  I  know  of 
no  other  mode  of  keeping  it  safe;  and  if  I  refuse  to  take 
the  interest,  I  should  only  throw  it  into  the  hands  of 
the  very  people  who  would  use  it  for  these  evil  pur- 
poses, or,  at  all  events-  for  less  good  than  I  can.  Nev- 
ertheless, it  is  daily  becoming  a  more  grave  question 
with  me  what  it  may  presently  be  right  to  do.  It  may 
be  better  to  diminish  private  charities,  and  much  more, 


228  LABOR    AND    FINANCE   REVOLUTION. 

mj  own  luxury  of  life,  than  to  comply  in  any  sort  with 
a  national  sin.  But  I  am  not  agitated  nor  anxious  in  the 
matter;  content  to  know  my  principle,  and  to  work 
steadily  towards  better  fulfillment  of  it." — John  Ruskin. 

BISHOP   jewel's   testimony. 

In  1560  Bishop  Jewel,  an  eminent  Christian  divine, 
wrote  as  follows  on  the  crime  of  usury:  '"Usury  is  a 
kind  of  lending  of  money,  or  corne,  or  oyle,  or  wine,  or  of 
any  other  thing,  wherein,  upon  covenants  and  bargaine, 
we  receive  again  the  whole  principall  which  we  deliv- 
ered, and  someivhat  more,  for  the  use  and  occupying  of 
the  same;  as  if  I  lend  100  pound,  and  for  it  covenant 
to  receive  105  pound,  or  any  other  summe,  greater  than 
was  the  summe  which  I  did  lend,  this  is  what  we  call 
usury;  such  a  kind  of  bargaining  as  no  good  man  or 
godly  man  ever  used.  Such  a  kind  of  bargaining  as  all 
men  that  ever  feared  God's  judgments  hav^e  alwaies  ab- 
hored  and  condemned.  It  is  filthy  gaines  and  a  workc 
of  darkness,  it  is  a  monster  in  nature,  the  overthrow  of 
mighty  kingdoms,  the  destruction  of  flourishing  States, 
the  decay  of  wealthy  cities,  the  plagues  of  the  world, 
and  the  misery  of  the  people;  it  is  theft,  it  is  the  emurth- 
ering  of  our  bretlii-en,  it's  the  curse  of  God  and  the  curse 
of  the  people.  This  is  usury.  By  these  signs  and  tokens 
you  may  know  it.  For  wheresoever  it  raigneth  all  those 
mischiefs  ensue. 

USURY   THE   WORK   OF   THE   DEVIL. 

"Whence springetli  usury?  Soone shewed.  Even  thence 
whence  theft,  murder,  adultery,  the  plagues,  and  destruc- 
tion of  the  people  doe  spring.  All  these  are  the  workes  of 


DEBT    AND  USURY.  229 

the  divell,  and  the  workes  of  the  flesh.  Christ  telleth  the 
Pharisees,  You  are  of  your  father  the  divell,  and  the 
lusts  of  your  father  you  will  doe.  Even  so  may  it 
truely  be  sayd  to  the  usurer.  Thou  art  of  thy  father  the 
divell,  and  the  lusts  of  thy  father  thou  wilt  doe,  and 
therefore  thou  hast  pleasure  in  his  workes.  The  divell 
entered  into  the  heart  of  Judas,  and  put  in  him  this 
greediness,  and  covetousness  of  gaine,  for  which  he  was 
content  to  sell  his  Master.  Juda's  heart  was  the  shop, 
the  divell  was  the  foreman  to  work  in  it.  They  that  will 
be  rich  fall  into  tentation  and  snares,  and  into  many 
foolish  and  noysome  lusts,  which  drowne  men  in  per- 
dition and  destruction.  For  the  desire  of  money  is  the 
root  of  all  evil.  And  St.  John  saith.  Whosoever  com- 
mitteth  sinne  is  of  the  Divell:  I.  Joh.,  3-8.  Thus  we 
see  that  the  d^vill  is  the  planter  and  father  of  usury. 

WHAT    ARE    THE  FRUITS    OF    USURY. 

"A.  1.  It  dissolveth  the  knot  and  fellowship  of  man- 
kind. 2.  It  hardeneth  man's  heart.  3.  It  maketh 
men  unnatural,  and  bereaveth  them  of  charity,  and  love 
for  their  dearest  friends.  4.  It  breedeth  misery  and  pro- 
voketh  the  wrath  of  God  from  heaven.  5.  It  consumeth 
rich  men,  it  eateth  up  the  poor,  it  maketh  bankrupts  and 
undoeth  many  householders.  6.  The  poore  occupiers 
are  driven  to  flee,  their  wives  are  left  alone,  their  children 
are  hopeless,  and  driven  to  beg  their  bread,  thiough  the 
unmerciful  dealing  of  the  covetous  usurer. 

"He  that  is,  an  usurer,  wishes  that  all  others  may  lacke 
and  come  to  him  and  borrow  of  him;  that  all  others 
may  lose,  so  that  he  may  have  gain.  Therefore  our  old 
forefathers  so  much  abhored  this  trade,  that  they 
thought  an  usurer  unworthy  to  live  in  the  company  of 


230  LABOR    AND    FINANCE    REVOLUTION. 

Christian  men.  They  suffered  not  a  usurer  to  be  wit- 
nesse  in  matters  of  Law.  Thej  suffered  him  not  to 
make  a  Testament,  and  to  bestow  his  goods  by  will. 
When  an  usurer  dyed,  they  would  not  suffer  him  to  be 
buried  in  places  appointed  for  the  burial  of  Christians, 
So  highly  did  they  mislike  the  unmerciful  spoyling  and 
deceiving  our  brethren. 

'•But  what  speak  I  of  the  ancient  Fathers  of  the  Cliurch? 
There  nev^er  was  any  religion,  nor  sect,  nor  state,  nor 
degree,  nor  profession  of  men,  but  they  have  disliked 
it.  Philosophers,  Greeks,  Latins,  lawyers,  divines, 
Catholice,  heretics;  all  tongues  and  nations  have  ever 
thought  an  usurer  as  dangerous  as  a  theefe.  The  very 
sense  of  nature  proves  it  to  be  so.  If  the  stones  could 
speak,  they  would  say  as  much." 


god's   LAW    ON    USURY. 


"And  if  thy  brother  be  waxen  poor,  and  fallen  into 
decay  with  thee,  then  shalt  thou  relieve  him,'  yea  though 
he  be  a  stranger  or  a  sojourner;  that  he  may  live  with 
thee.  Thou  shalt  not  give  him  thy  money  upon  nsury^ 
nor  lend  him  thy  victuals  for  inc?'ease.^^ — Lev.  xxv.  35, 
36. 

"  If  thou  lend  money  to  any  of  my  people  that  is  poor 
that  dwelleth  with  thee,  thou  shalt  not  be  hard  upon 
him  as  an  ex-tortioner,  nor  oppress  him  with  usuries." — 
Ex.  xxii.  ^21^. 

"And  I  rebuked  the  nobles  and' magistrates,  and  said 
to  them:  Do  you  every  one  exact  usury  of  your  brethren? 
And  I  gathered  together  a  great  assembly  against  them." 
Nehemiah  v.  7. 

"  Thou  shalt  not  ^end  to  thy  brother  money  to  usury, 
nor  corn,  nor  any  other  thing.     To   thy  brother  tiiou 


DEBT   AND  USUKY.  231 

shalt  lend  that  which  he  wanteth  without  usury,  that 
the  Lord  may  bless  thee  in  all  thy  works." — Deut.  xxiii. 
19,  20. 

"  Go  to  now  ye  rich  men,  weep  and  howl  for  your  mis- 
eries that  shall  come  upon  you.  Your  riches  are  corrupted 
and  your  garments  are  moth-eaten;  your  gold  and  silver 
is  cankered;  and  the  rust  of  them  shall  be  a  witness 
against  you;  and  shall  eat  your  flesh  as  it  were  fire.  * 
*  *  *  Behold  the  hire  of  the  laborers  who  have 
reaped  down  your  fields  which  is  of  you  kept  back  by 
fraud  crieth;  and  the  cries  of  them  which  have  reaped 
have  entered  into  the  ears  of  the  Lord  of  Sabaoth.  Ye 
have  lived  in  pleasure  on  the  earth  and  been  wanton;  ye 
have  nourished  your  hearts  as  in  a  day  of  slaughter;  ye 
have  condemned  and  killed  the  just  and  he  doth  not 
resist  you." — James  v.  1-6. 

"•  Henry  YIII  was  the  first  monarch  who  legalized, 
usury  in  Christendom,  Calvin  was  the  first  prominent 
religious  teacher  who  defended  it,  and  Cromwell  en- 
dorsed it,  which  so  delighted  the  Jews  that  they  believed 
him  to  be  the  promised  Messiah,  to  give  them  the  domin- 
ion of  tlie  world,  and  instituted  worship  of  him  in  their 
synagogues,  which  worship  Cromwell  promptly  sup- 
pressed, but  permitted  tlieir  more  devastative  practices. 

"  All  throuirh  these  ages  to  that  time,  the  churches, 
both  Catholic  and  Protestant,  warred  upon  usury  with 
the  same  consistency  and  persistency  that  they  did  upon 
the  other  deadly  sins,  but  thereafter  churchmen  became 
comparatively  lukewarm.  The  term  usury  fell  into  dis- 
use, and  the  word  interest  was  substituted  therefor. 
Hume,  the  historian,  by  no  means  inclined  to  liberal 
ideas,  refers  very  quaintly  but  pointedly  to  this  substi- 
tution as  '  a  lucky  accident  in  language  which  has  great 
effect  upon  men's  ideas.'  " — Dreiv. 


232  LABOR    AND    FINANCE    REVOLUTION. 

A  hundred  years  before  Hume's  time,  Shakespeare's 

keen  eye  had  detected  the  cliange  of  terms,  and  he  made 

Shylock  say  of  Antonio: 

How  like  a  fawning  publican  he  looks! 
I  hate  him,  for  he  is  a  Christian : 
But  more,  for  that  in  low  simplicity 
He  lends  out  money  gratis,  and  brings  down 
The  rate  of  usance  here  with  us  in  Venice. 
He  rails,  where  merchants  most  do  congregate, 
On  me,  my  bargains  and  my  well  won  thrift, 
Which  he  calls  interest. 


CHAPTER  IV 
CONVENTIONS. 

BRIEF    HISTORY    OF    NATIONAL    POLITICAL    CONVENTIONS. 

{From  Oreeley  &  Cleveland's  Political  Text-Book,  1860,  and  other 

sources.) 

National  Conventions  for  the  nomination  of  candidates  for  Presi- 
dent and  Vice  President  are  of  comparatively  recent  ont^in.  In  the 
earlier  political  history  of  the  United  States,  under  the  Federal  Cou- 
stiiUtion,  candidate  for  President  and  Vice  President  were  nomi- 
nated by  C'ingressional  and  legislative  caucuses.  Washington  was 
elected  as  first  President  under  the  Constitution,  and  re-elected  for  a 
second  term  by  a  unanimous,  or  nearly  unanimous,  concurrence  of 
the  American  people;  but  an  opposition  jiarty  gradually  grew  up  in 
Congress,  which  became  formidable  during  its  second  terra,  and 
which  ultimately  crystallized  into  what  was  then  called  the  Republi- 
can Party.  John  Adams,  of  Massachusetts,  was  prominent  among 
the  leading  Federalists,  while  Thomas  Jefferson,  of  Virginia,  was 
pre-eminently  the  author  and  oracle  of  the  Republican  Party,  and,  by 
common  consent,  they  were  the  opposing  candidates  for  the  Presi- 
dency, on  Washington's  retirement  in  1796-7. 

1800. — The  first  Congressional  Caucus  to  nominate  candidates  for 
President  and  Vice  President  is  said  to  have  been  held  in  Philadel- 
phia, in  the  year  1800,  and  to  have  oondnated  Mr.  Jefferson  for  the 
first  office,  and  Aaron  Burr  for  the  second.  These  candidates  were 
electeil  after  a  desperate  struggle,  beating  John  Adams  and  Charles 
O.  Pinckney,  of  South  Carolina. 

1804. — In  1804  Mr.  Jetterson  was  re-elected  President,  with  George 
Clinton,  of  New  York,  for  Vice,  encountering  but  slight  opposition; 
Messrs.  Charles  C.  Pinckney  and  Rufus  King,  the  opposing  candi- 
dates, receiving  only  14  out  of  176  electoral  votes.  We  have  been 
unable  to  find  any  record  as  to  the  manner  of  their  nomination. 

lf<08. — In  January,  1808,  when  Mr.  Jefferson's  second  term  was 
about  to  close,  a  Republican  Congressional  Caucus  was  iield  at 
Washington,  to  decide  as  to  the  relative  claims  of  Madison  and  Mon- 
roe for  the  successioa,  the  Legislature  of  Virginia,  which  had  been 
said  to  exert  a  potent  influence  over  such  questions,  being,  on  this 
occasion,  unable  to  agree  as  to  which  of  her  favored  sous  should  have 
the  preference.  Ninety-four  out  of  the  l;]6  Republican  members  of 
Congress  attended  this  caucus,  and  declared  their  preference  of  Mr. 
Madison,  who  received  83  votes,  the  remaining  11  being  divided  be- 
tween Mr.  Monroe  and  George  Clinton.     The  opposition  then  sup- 

233 


234  LABOR    AND    FINANCE    REVOLUTION. 

ported  Mr.  Pinckney,  but  Mr.  Madison  was  elected  by  a  large  majorily. 

1813. — Toward  the  close  of  Mr.  Madison's  earlier  term  he  was 
nominated  for  re-election  by  a  Congressional  Caucus,  held  at  Wash- 
ington in  May,  1812.  In  September,  of  tlie  same  year,  a  convention 
of  the  opposition  representing  eleven  States,  was  held  in  the  City  of 
New  York,  which  nominated  DeWitt  Clinton,  of  New  York,  for 
President.  He  was  also  put  in  nomination  by  the  Republican  Legis- 
lature of  New  York.  The  ensuing  canvass  resulted  in  the  re-election 
of  Mr.  Madison,  who  received  128  electoral  votes  to  89  for  DeWitt 
Clinton. 

181G. — In  1816  the  Republican  Congressional  Caucus  nominated 
James  Monroe,  who  received  in  the  caucus  65  votes,  to  54  for  Wm. 
H.  Crawford,  of  Georgia.  The  opposition,  or  Federalists,  named 
Rufus  King,  of  New  York,  who  received  only  34  electoral  votes  out 
of  217. 

1820. — There  was  no  opposition  to  the  re-election  of  Mr.  Monroe  in 
1820,  a  single  (Republican)  vote  being  cast  against  him,  and  for  John 
Quincy  Adams. 

1824. — In  1824  the  Republican  Parly  could  not^be  induced  to  abide 
by  the  decision  of  a  Congressional  Caucus.  A  large  majority  of  the 
Republican  members  formally  refused  to  participate  iu  such  a  gath- 
ering, or  be  governed  by  its  decision;  still,  a  caucus  was  called,  and 
attended  by  the  friends  of  Mr.  Crawford  alone.  Of  the  2G1  Members 
of  Congress  at  this  time,  216  were  Democrats  or  Republicans;  yet 
only  66  responded  to  their  names  at  roll-call,  64  of  whom  voted  "for 
Mr.  Crawford,  as  the  Republican  nominee  for  President.  This  nom- 
ination was  very  extensively  repudiated  throughout  the  country,  and 
three  competing  Republican  candidates  were  brought  into  the  field 
through  legislative  and  other  machinery,  viz.:  Andrew  Jackson, 
Henry  Clay,  and  John  Quincy  Adams.  The  result  of  this  famous 
"  scrub-race  "  for  the  Presidency  was,  that  no  one  was  elected  by  the 
people,  Gen.  Jackson  receiving  99  electoral  votes,  Mr.  Adams  84,  Mr. 
Crawford  41,  and  Mr.  Clay  37.  The  election  then  devolved  on  the 
House  of  Representatives,  when  Mr.  Adams  was  chosen,  receiving 
the  votes  of  13  States,  against  7  for  Gen.  Jackson  and  4  for  Mr.  Craw- 
ford.   This  was  the  end  of  "  King  Caucus." 

1828. — Gen.  Jackson  was  immediately  thereafter  put  in  nomination 
for  the  ensuing  term  by  the  Lesrislature  of  Tennessee,  having  only 
Mr.  Adams  for  an  opponent  in  1828,  when  he  was  elected  by  a  decided 
majority,  receiving  178  electoral  votes,  to  83  for  Mr.  Adams. 

The  first  political  National  Convention  in  this  country  of  which 
we  have  any  record  was  held  at  Philadelphia  in  September,  1830, 
styled  the  United  States  Anti-Masonic  Convention.  It  was  composed 
of  96  delegates.  Francis  Granger,  of  New  York,  presided,  but  no 
business  was  transacted. 

In  compliance  with  its  call,  a  National  Anti-Masonic  Conventloa 
was  held  at  Baltimore  in  September,  1831,  which  nominated  William 
Wirt,  of  Maryland,  for  President,  and  Amos  Ellmaker,  of  Pennsyl- 
vania, for  Vice  President. 

The  candidates  accepted  the  nomination,  and  received  the  electoral 
vote  of  Vermont  only. 

1833. — There  was  no  open  opposition  in  the  Democratic  Party  to 


CONVENTIONS.  235 

the  nomination  of  Gen.  Jackson  for  a  second  term  in  1832,  but  tlie 
party  was  not  so  well  satisfied  with  Mr.  Calhoun,  the  Vice-President, 
so  a  convention  was  called  to  meet  at  Baltimore,  in  May,  1883,  to 
nominate  a  candidate  for  the  second  offlce. 

Mr.  Van  Buren  received  more  than  two-thirds  of  all  the  votes  cast, 
and  was  declared  nominated. 

The  National  Republicans  met  in  convention  at  Baltimore,  De- 
cember 12,  1831.  Seventeen  States  and  the  District  of  Columbia 
were  represented  by  157  delegates,  who  cast  an  unanimous  vote  for 
Henry  Clay,  of  Kentucky,  for  President. 

1836. — In  May,  1835,  a  Democratic  National  Convention,  represent- 
ing twenty-one  States,  assembled  at  Baltimore.  A.  rule  was  adopted, 
that  two-thirds  of  the  whole  number  of  votes  should  be  necessary  to 
make  a  nomination,  or  to  decide  any  question  connected  therewith. 
On  the  first  balliit  for  President,  Mr.  Van  Buren  was  nominated 
unanimously,  receiving  265  votes. 

In  1835,  Gen.  William  H.  Harrison,  of  Ohio,  was  nominated  for 
President,  with  Francis  Granger  for  Vice-President,  by  a  Whig  State 
Convention  at  Harrisburg,  Pa.  Gen.  Harrison  also  received  nomina- 
tions in  Maryland,  New  York,  Ohio,  and  other  States. 

1840. — A  Whig  National  Convention,  representing  twenty-one 
States,*met  at  Harrisburg,  Pa.,  December  4,  1839.  James  Barbour, 
of  Virginia,  presided,  and  the  result  of  the  first  ballot  was  the  nom- 
ination of  Gen.  William  H.  Harrison,  of  Ohio,  who  received  148  votes, 
to  90  for  Henry  Clay,  and  16  for  Gen.  Wiufield  Scott.  John  Tyler, 
of  Virginia,  was  unanimously  nominated  as  the  Whig  candidate  for 
Vice-President. 

A  Convention  of  Abolitionists  was  held  at  Warsaw,  N.  Y.,  on  the 
13th  of  November,  1839,  and  nominated  for  President  James  G.  Bir- 
ney,  of  New  York,  and  for  Vice-President,  Francis  J.  Lemoyne,  of 
Pennsylvania.  These  gentlemen  declined  the  nomination.  Never- 
theless, they  received  a  total  of  7,6U9  votes,  in  various  Free  States. 

A  Democratic  National  Convention  met  at  Baltimore,  May  5, 
1840,  to  nominate  candidates  for  President  and  Vice-President.  The 
Convention  then  unanimously  nominated  Mr.  Van  Buren  for  re-elec- 
tion as  President. 

1844. — A  AVhig  National  Convention  assembled  in  Baltimore  on 
the  1st  of  May,  1844,  in  which  every  State  in  the  Union  was  repre- 
sented, and  Mr.  Clay  was  nominated  for  President  by  acclamation. 

A  Democratic  National  Convention  assembled  at  Baltimore  on  the 
27th  of  May,  1844,  adopted  the  two-tliirds  rule,  and,  after  a  stormy 
session  of  three  days,  James  K.  Polk,  of  Tennessee,  was  nominated 
for  President,  aud  Silas  Wright,  of  New  York,  for  Vice-President. 
Mr.  Wright  declined  the  nomination,  and  George  M.  Dallas,  of  Penn- 
sylvania, was  selected. 

The  Liberty  Party  National  Convention  met  at  Buftalo  on  the  30th 
of  August,  1843.  James  G,  Birney,  of  Michigan,  was  unanimously 
nominated  for  President,  with  Thomas  Morris,  of  Ohio,  for  Vice- 
President. 

1848. — A  Whig  National  Convention  met  at  Philadelphia  on  the 
7th  of  June,  1848.  After  a  rather  stormy  session  of  three  days.  Gen. 
Zachary  Taylor,  of  Louisiana,  was  nominated  for  President,  and  Mil- 
lard Fillmore,  of  New  York,  for  Vice-President 


236  LABOR    AND    FINANCE    KEVOLUTION. 

The  Democratic  National  Convention  for  1348  assembled  in  Balti- 
more on  the  22d  of  May.  The  two-thirds  rule  was  adopted,  and  Gen, 
Lewis  Cass  was  nominated  for  President  on  the  fourth  ballot. 

On  the  9th  of  August,  1845,  a  Free  Democratic  or  Free  Soil  Con- 
vention was  held  at  BufTalo,  which  was  attended  by  delegates  from 
seventeen  States.  Charles  Francis  Adams,  of  Massachusetts,  pre- 
sided, and  the  Convention  nominated  Messrs.  Van  Buren  and  Adams 
as  candidates  for  Presideut  and  Vice-President. 

1853. — The  Whig  National  Convention  of  1852  assembled  at  Balti- 
more on  the  16th  of  June,  and  after  an  exciting  session  of  six  days, 
nominated  Gen.  Winfield  Scott  as  President,  on  the  fift3'-third  ballot. 

The  Democratic  Convention  of  1852  assembled  at  Baltimore  on  the 
1st  of  June,  and  the  two-thirds  rule  was  adopted.  Gen.  Franklin 
Pierce,  of  New  Hampshire,  was  nominated  fur  President,  on  the 
fort^'-ninth  ballot. 

The  Free  Soil  Democracy  held  a  National  Convention  at  Pittsburg, 
on  the  llth  of  August,  1852,  Henry  Wilson  of  Mass.,  presiding.  All 
the  Free  States  were  represented,  with  Delaware,  Virgmia,  Kentucky 
and  Maryland.  John  P.  Hale,  of  New  Hampshire,  was  nominated 
for  President,  with  Geo.  W.  Julian,  of  Indiana,  for  Vice-President. 

1856. — The  Republican  National  Convention  of  1856  met  at  Phila- 
delphia on  the  17th  of  June.  Col.  John  C.  Fremont  was  unanimously 
nominated,  liaving  received  359  votes  on  the  first  ballot  against  196 
lor  Jolm  McLean. 

On  February  22,  1856,  the  American  National  Nominating  Con- 
vention oriranized  at  Philadelphia,  with  221  delegates  in  attendance. 
Millard  Fillmore  was  declared  to  be  the  nominee,  with  Andrew 
Jackson  Donelson,  of  Tennessee,  for  Vice-President. 

The  Democratic  National  Convention  of  1856  met  at  Cincinnati  on 
-tlie  2d  of  June,  and  nominated  James  Buchanan  on  the  seventeenth 
ballot'.^  John  C.  Breckinridge,  of  Kentucky,  was  unanimously  nom- 
inated for  Vice-Prisident. 

A  Republican  National  Convention  assembled  at  Chicago  on  May 
16,  1800,  delegates  being  in  attendance  from  all  the  Free  States,  as 
also  from  Delaware,  Maryland,  Virginia,  Kentucky,  and  Missouri. 
Abraham  Lincoln  was  nominated  for  the  Presidency  on  the  third 
ballot,  receiving  854  out  of  466  votes;  his  principal  ompetitors  being 
William  H.  Seward,  Salmon  P.  Chase,  and  Edward  Bates. 

1860. — A  Democratic  National  Convention  assembled  at  Charleston, 
S.  C,  on  the  23d  of  April,  1860,  with  full  delegations  present  from 
every  State.  Dissensions  arising,  chiefly  out  of  the  question  of 
slavery  in  the  Territories,  too  great  to  be  reconciled,  the  delegations 
from  seven  Southern  States  withdrew,  and  the  convention  adjourned, 
after  fifty-seven  inetfectual  ballots  for  a  candidate,  to  meet  at  Balti- 
more, June  18.  Here  Stephen  A.  Douglas  was  nominated  for  Pres- 
ident, and  B.  Fitzpatrick  for  Vice-President.  The  latter  declined, 
and  H.  V.  Johnson  was  substituted  by  the  National  Committee.  The 
Convention  of  Seceders  nominated  John  C.  Breckinridge  and  Joseph 
Lane. 

A  " Constitutional  Union"  Convention  from  twenty  States  met  at 
Baltimore,  May  9,  1860,  and  nominated  John  Bell  and  Edward 
Everett  for  the  Presidency  and  Vice- Presidency. 


CONVENTIONS.  237 

1864. — The  Republican  National  Convention  met  at  Baltimore, 
June  7.  The  re-nomination,  for  President,  of  Abraham  Lincoln, 
of  Illinois,  was  made  unanimous,  he  having  received  the  votes  of  all 
the  States  except  Missouri,  cast  for  Gen.  Grant.  For  Vice-President, 
Andrew  Johnson,  of  Tennessee,  was  nominated  on  the  second  ballot, 
his  principal  competitors  being  D.  S.  Dickinson  and  H.  Hamlin. 

The  Demncratic  National  Convention  met  at  Chicago,  111.,  August 
29.  Nominations — President,  George  B.  McCh'llan,  of  New  Jer- 
sey; Vice-President,  George  H.  Pendleton,  of  Ohio. 

1868. — The  National  Republican  Convention  met  at  Chicago,  111., 
May  20.  Nominations — President,  Ulysses  S,  Grant,  of  Illinois; 
Vice-President,  Schuyler  Colfax,  of  Indiana. 

The  Democratic  National  Convention  met  at  New  York,  July  4. 
Nominations — President,  Horatio  Seymour,  of  New  York ;  Vice- 
President,  Francis  P.  Blair,  Jr.,  of  Missouri. 

1872. — The  Liberal  Republican  Convention  met  at  Cincinnati, 
Ohio,  May  1.  Nominations — President,  Horace  Greeley,  of  New 
York,  on  tiie  sixth  ballot,  by  482  votes,  against  187  for  David  Davis, 
of  Illinois;  Vice-President,  B.  Gratz  Brown,  of  Missouri,  on  the 
second  ballot. 

The  Republican  National  Convention  met  at  Philadelphia,  Pa., 
June  5.  Nominations— President,  ¥lysses  S.  Grant,  on  the  first 
ballot,  unanimously;  Vice-President,  Henry  Wil.-on,  of  Massachu- 
setts, receiving  364 j^  votes  against  321 1^  for  Schuyler  Colfax. 

The  Democratic  National  Convention  met  at  Baliimore,  Md.,  July 
9.  Nominations — Pri'>ident,  Horace  Greeley,  on  the  first  ballot, 
receiving  686  votes  to 38  scattering;  Vice-President,  B.  Gratz  Brown, 
who  received  713  votes. 

The  Democratic  ("Straiijht  Out")  Convention  met  at  Louisville, 
Ky.,  September  3.  Nominations— President,  Charles  O'Conor,  of 
New  York;  Vice-President,  John  Q.  Adams,  of  Massachusetts.  The 
nominations  were  declined. 

1876. — The  Republican  National  Conveuticm  met  at  Cincinnati, 
Oliio,  June  14.  Nominations— President,  Rutherford  B.  Hayes, 
of  Ohio,  on  the  seventh  ballot,  receiving  384  votes,  to  351  for  J.  G. 
Blaine,  and  isl  for  B,  H.  Brislow;  Vice- President,  William  A.Wheeler, 
of  New  York. 

The  Demncratic  National  C<invention  met  at  St.  Louis.  Mo.,  June 
27.  Nominaliims— President,  Samuel  J.  Tilden,  of  New  York,  on 
the  second  ballot,  receiving  535  votes,  against  85  for  Hendricks,  54 
for  Wm.  Allen,  58  for  W.  S.  Hancock,  and  six  scattering;  Vice- 
President,  Thomas  A.  Hendricks,  of  Indiana. 

A  "  National  Greenback  Convention,"  composed  of  men  opposed 
to  specie  resumption  and  in  favor  of  national  paper  money  to  take 
the  place  of  bank  issues,  met  at  Indianapolis,  May  17,  with  nine- 
teen States  represented.  Peter  Cooper,  of  New  York,  and  Samuel  F. 
Cary,  of  Ohio,  were  nominated  for  President  and  Vice-President. 

A  "  Prohibition  Reform  Party  "  Convention  met  at  Cleveland,  May 
17,  and  nominated  Green  Clay  Smith,  of  Keutucky,  and  R.  T. 
Stewart,  of  Ohio. 

1880.— The  Republican  National  Convention  met  at  Chicago,  June 
2,  and  on  the  sixth  day  of  the  convention  nominated  James  A.  Gar- 


238  LABOR    AND    FINANCE    REVOLUTION. 

field  for  President,  and  C.  A.  Arthur  for  Vice-President. 

The  Greenback  Labor  National  Convention  met  in  Chicago,  June 
9,  and  nominated  Gen.  J.  B.  Weaver  for  President,  and  B.  j.  Cham- 
bers, of  Texas,  for  Vice-President. 

The  Democratic  National  Convention  met  in  Cincinnati,  June  23, 
and  nominated  Gen.  W.  S.  Hancock  for  President,  and  W.  H.  English 
for  Vice-President, 


CHAPTER  V. 


PLATFORM 


OF  THE  GREENBACK  LABOR  PARTY,  ADOPTED  AT  THE  NATIONAL 
CONVENTION,  HELD  IN  CHICAGO,  JUNE  9  AND  10,  1880. 

Civil  Government  sliould  guarantee  the  divine  right  of  every  laborer 
to  the  results  of  his  toil,  thus  enabling  the  producers  of  wealth  to  pro- 
vide themselves  with  the  means  for  physical  comfort,  and  ihe  facili- 
ties for  mental,  social  and  moral  culture;  and  we  condemn  as  un- 
worthy of  our  civilization  the  barbarism  which  imposes  upon  the 
wealth  producers  a  state  of  perpetual  drudgery  as  the  price  of  bare 
animal  existence. 

Notwithstanding  the  enormous  increase  of  productive  power,  the 
universal  introduction  of  labor-saving  maciiinery,  and  the  discovery 
of  new  agents  for  the  increase  of  wealth,  the  task  of  the  laborer  is 
scarcely  lightened,  the  hours  of  toil  are  but  little  shortened,  and  few 
producers  are  lifted  from  poverty  into  comfort  and  pecuniary  inde- 
pendence. 

The  associated  monopolies,  the  international  syndicates  and  other 
income  classes  demand  dear  money  and  cheap  labor,  a  "  strong  Gov- 
ernment," and  hence  a  weak  people. 

Corporate  control  of  the  volume  of  money  has  been  the  means  of 
dividing  society  into  hostile  classes;  of  the  unjust  distribution  of  the 
products  of  labor,  and  of  building  up  monopolies  of  associated  cap- 
ital, endowed  with  power  to  confiscate  private  property.  It  has  kept 
money  scarce,  and  scarcity  of  money  enforces  debt-trade,  and  public 
and  corporate  loans — debt  engenders  usury,  and  usury  ends  in  the 
bankruptcy  of  the  borrower. 

Other  results  are,  deranged  markets,  uncertainty  of  manufacturing 
enterprise  and  agriculture,  precarious  and  intermittent  employment 
for  the  laborer,  industrial  war,  increasing  pauperism  and  crime  and 
the  consequent  intimidation  and  disfranchisement  of  the  producer, 
and  a  rapid  declension  into  corporate  feudalism. 

Therefore  we  declare — 

1.  That  the  right  to  make  and  issue  money  is  a  sovereign  power  to 
be  maintained  by  the  people  for  the  common  benefit.  The  delegation 
of  this  right  to  corporations  is  a  surrender  of  the  central  attribute  of 
sovereignty,  void  of  constitutional  sanction,  conferring  upon  a  sub- 
ordinate irresponsible  power,  and  absolute  dominion  over  industry 
and  commerce.  All  money,  whether  metallic  or  paper,  should  be 
issued  and  its  volume  controlled  by  the  Govei-nmcnt  and  not  by  or 

239 


240  LABOR    AND    FINANCE    KEVOLUTION. 

through  banking  corporations,  and  when  so  issued  should  be  a  full 
legal  tender  for  all  debts,  pu'ilic  and  private. 

2.  That  the  bonds  of  the  Uuited  States  should  not  be  refunded,  but 
paid  as  rapidly  as  it  is  practicable,  according  to  contract.  To  enable 
the  Government  to  meet  these  obligations,  legal  tender  currency 
should  be  substituted  for  the  notes  of  the  national  banks,  the  national 
banking  system  abolished,  and  the  unlimited  coinage  of  silver  as  wed 
as  gold  established  by  law. 

3.  That  labor  should  be  so  protected  by  national  and  state  author- 
ity as  to  equalize  its  burdens  and  insure  a  just  distribution  of  its 
results;  the  eight-hour  law  of  Congress  should  be  enforced;  the  san- 
itary condition  of  industrial  establishments  placed  under  rigid  con- 
trol;  the  competition  of  contract  convict  labor  abolished ;  a  bureau 
of  labor  statistics  established;  factories,  mines  and  workshops  in- 
spected;  the  employment  of  children  under  fourteen  years  of  age 
forbidden,  and  wages  paid  in  cash. 

4.  Slavery  being  simply  cheap  labor,  and  cheap  labor  being  sim- 
ply slavery,  the  importation  and  presence  of  Chinese  serfs  necessarily 
tends  to  brutalize  and  degrade  American  labor;  therefore  immediate 
steps  should  be  taken  to  abrogate  the  Burlingame  treaty. 

5.  Railroad  land  grants  forfeited  by  reason  of  non-fulfillment  of 
contract  should  be  immediately  reclaimed  by  the  Government;  and 
henceforth  the  public  domain  reserved  exclusively  as  homes  for 
actual  settlers. 

6.  It  is  the  duty  of  Congress  to  regulate  inter-state  commerce. 
All  lines  of  communication  and  transportation  should  be  brought 
under  such  legislative  control  as  shall  secure  moderate,  fair  and  uni- 
form rates  for  passenger  and  freight  traffic. 

7.  We  denounce,  as  destructive  to  prosperity  and  dangerous  to 
liberty,  the  action  of  the  old  parlies  in  fostering  and  sustaining  gi- 
gantic laud,  railroad  and  money  corporations  and  monopolies, 
invested  with,  and  exercising,  powers  belonging  to  the  Government, 
and  yet  not  responsible  to  it  for  the  manner  of  their  use. 

8.  That  the  constitution,  in  giving  Congress  the  power  to  borrow 
money,  to  declare  war,  to  raise  and  support  armies,  to  provide  and 
maintain  a  navy,  never  intended  that  the  men  who  loaned  their  money 
for  an  interest  consideration  should  be  preferred  to  the  soldier  and 
sailor  who  periled  their  lives  and  shed  their  blood  on  land  and  sea 
in  defense  of  their  country,  and  we  condemn  the  cruel  class  legisla- 
tion of  the  Republican  party  which,  while  professing  great  giatitude 
to  the  soldier,  has  most  unjustly  discriminated  agamst  him,  and  m 
favor  of  the  bondholder. 

9.  All  property  should  bear  its  just  proportion  of  taxation,  and  we 
demand  a  graduated  income  tax. 

10.  We  denounce  as  most  dangerous  the  efforts  everywhere  man- 
ifest to  restrict  the  right  of  suffrage. 

11.  We  are  opposed  to  an  increase  of  the  standing  army  in  time 
of  peace,  and  the  insidious  scheme  to  establish  an  enormous  military 
power  under  the  guise  of  militia  laws. 

13.  We  demaml  absolute  democratic  rules  for  the  Government  ot 
Congress,  placing  all  representatives  of  the  people  upon  an  equal 
footing,  and  taking  away  from  committees  a  veto  power  greater 
than  that  of  the  President. 


PLATFORM.  241 

13.  We  demand  a  Government  of  the  people,  by  the  people,  and 
for  the  people,  instead  of  a  Government  of  the  bondholder,  by  the 
bondholder,  and  for  the  bondholder;  and  we  denounce  every  attempt 
to  stir  up  sectional  strife  as  an  effort  to  conceal  monstrous  crimes 
against  the  people. 

14.  In  tlie  furtherance  of  these  ends  we  ask  the  co-operation  of  all 
fair-minded  people.  We  have  no  quarrel  with  individuals,  we  wage 
no  war  upon  classes,  but  only  against  vicious  institutions.  We  are 
not  content  to  endure  further  discipline  from  our  present  actual 
rulers,  who,  haviug  dominion  over  money,  over  transportation,  over 
land  and  labor,  over  the  machinery  of  Government,  and  largely  over 
the  press,  wield  unwarrantable  power  over  our  institutions,  and  over 
life  and  property. 

Jefferson's  political  maxims. 

1.  Legal  equality  of  human  beings. 

2.  The  people  the  only  source  of  legitimate  power. 

3.  Absolute  and  lasting  severance  of  Church  and  State. 

4.  Freedom,  sovereignty  and    independence  of  the  respective 
States. 

5  The  Union  a  compact— neither  consolidation  nor  a  centraliza- 
tion. 

6.  Constitution  of  the  Union  a  special  written  grant  of  powers, 
limited  and  definite. 

7.  No  hereditary  offices,  nor  order,  nor  title. 

8.  No  taxation  beyond  the  public  want. 

9.  No  National  debts  if  possible. 

10.  No  costly  splendor  of  administration. 

11.  No  proscription  of  opinion  nor  of  public  discussion. 

12.  No  unnecessary  interference  with  individual  property  or 
speech. 

13.  The  civil  paramount  to  the  military  authority. 

14.  The  representative  to  obey  the  instructions  of  his  constituents. 

15.  No  favored  classes,  no  monopolies. 

16.  Elections  free,  and  suflrage  universal. 

17.  No  pubic  moneys  expended  except  by  warrant  of  specific  ap- 
propriation. 

18.  No  mysteries  in  Government  inaccessible  to  the  public  eye. 
13.    Public  compensation  for  public  services,  moderate  salaries, 

and  pervading  economy  and  accountability. 

16 


CHAPTER  VI. 

WHAT  CONGRESS  HAS  DONE  FOR  SHYLOCK. 

In  a  speech  delivered  in  Congress  May  10,  1880,  con- 
trasting the  Government's  generositj'  toward  the  inone}^ 
kings  with  its  niggardly  treatment  of  the  soldiers,  Gen. 
J.  B.  Weaver  said: 

"  Now,  Mr.  Chairman,  how  has  the  Government  dealt 
with  other  classes  of  public  creditors — the  bond  holding, 
money-lending  classes?  Behold  the  contrast!  Soldiers, 
read,  and  then  avenge  yourselves  and  families  at  the  bal- 
lot-box. 

'•  1.  Whe-n  the  soldier  was  absent  in  the  field,  when 
he  could  not  be  present  in  Congress  to  protect  himself 
and  family,  the  money  interest,  bankers,  and  brokers, 
were  permitted  to  put  the  sting  of  death  in  the  back  of 
every  greenback  bjll  issned,  for  the  very  purpose  of  de- 
preciating it  and  rendering  it  less  valuable  than  gold, 
and  on  purpose  to  make  a  market  for  their  gold  coin. 

"  2.  They  were  then  permitted  to  buy  in  the  green- 
backs at  an  enormous  discount,  and  in  turn  to  convert 
them  into  5.20  bonds,  drawing  six  per  cent,  interest  in. 
coin. 

"  3.  They  procured  their  bond  investments  to  be  ex- 
empted from  every  species  of  taxation,  national,  state, 
and  municipal. 

"  4.  Congress  then  passed  an  act  whereby  the  bond- 
holder had  his  interests  paid  quarterly. 

"  5.     He  was  allowed  hy  joint  resolution  of  Congress, 

242 


WHAT  CONGRESS  HAS  DONE  FOK  SHYLOCK,  243 

approved  March  17,  1864,  to  draw  his  coin  interest  in 
advance  for  a  period  not  to  exceed  one  year,  with  or 
without  rebate,  at  the  discretion  of  the  secretary  of  the 
treasury,  and  from  1864  to  1869,  wlien  gold  was  at  its 
highest  premium,  he  was  permitted  by  that  law  to  draw 
his  gold  interest  in  advance  without  rebate,  as  appears 
from  an  official  letter  now  in  my  possession  signed  by 
H.  F,  French,  acting  secretary  of  the  treasury,  and  dated 
April,  1880.  Under  this  law  the  owner  of  a  Govern- 
ment bond  for  $1,000,000  could  draw  $60,000  in  gold 
interest  in  advance;  he  could  then  turn  around  and  buy 
with  his  $60,000  $150,000  in  greenbacks,  and  then  again 
invest  his  greenbacks  at  their  face  value  in  5.20  bonds. 

"6.  After  the  money-changer  had  invested  his  last 
dollar  in  bonds  and  drawn  all  the  interest  possible  in 
advance,  and  invested  that  also  in  Government  bonds, 
he  was  generously  permitted  ^by  the  national  bank  act  to 
deposit  his  securities  with  the  treasury  and  draw  ninety 
per  cent,  of  their  value  in  national  bank  notes,  which  he 
could  use  as  money,  charging  him  therefor  but  one  per 
cent,  to  cover  cost  of  printing. 

"  7.  The  5.20  bonds  were  payable  in  the  same  kind 
of  money  that  bought  them,  namely,  greenbacks.  To 
prevent  this,  as  will  be  seen  by  the  following,  John 
Sherman's  report  to  the  Senate  in  1867,  the  "credit- 
strengthening  act  "  of  1869  and  the  refunding  bill  of 
1870  were  passed.  After  showing  by  an  unanswerable 
argument  that  the  5.20  bonds  would  be  paid  in  currency, 
Mr.  Sherman,  in  his  report,  says: 

"  'It  has  been  proposed  that  Congress,  by  resolution,  declare  that 
the  5.20  bonds  are  redeemable  only  in  gold.  Tliis,  instead  of  settling 
the  question,  will  only  create  divisions  and  parlies,  and  the  resolution 
when  passed  will  be  subject  to  agitation  and  repeal.  This  considera- 
tion induces  your  committee,  without  deciding  the  question,  to  pro- 
pose the  substitution  of  new  bonds,  clear  and  explicit  in  their  terms, 
for  the  old  bonds,  as  they  become  redeemable.' 


244  LABOR    AND    FINANCE    REVOLUTION. 

"  This  added  at  least  as  a  mere  gift,  six  hundred  mil- 
lions to  the  value  of  the  bondholder's  investment. 

"8,  By  a  clause  in  the  funding  bill  of  1870,  the  in- 
terest on  bonds  was  also  exempted  from  every  species  of 
tax — national,  state,  or  municipal. 

"  9.  In  1873,  when  the  country  was  suffering  from 
the  blight  of  panic,  when  the  farms  of  this  country 
went  under  mortgage,  and  the  bankrupt  courts  were 
filled  with  suitors,  the  money-changers,  to  prevent  their 
investments  from  being  tinterfered  with  by  payment, 
procured  the  demonetization  of  silver,  thus,  making  their 
bonds  payable  in  gold  only. 

"  10.  In  furtherance  of  their  scheme,  through  their 
pliant  tool,  the  present  secretary  of  the  treasury,  they 
now,  in  defiance  of  law,  refuse  to  pay  out  the  silver 
coined  under  the  act  of  1878,  and  keep  it  hoarded  in  the 
treasury,  and  are  constantly  belaboring  Congress  for  new 
appropriations  to  build  vaults  in  which  to  store  it. 

''  11.  They  passed  the  resumption  act  in  1875,  where- 
by it  was  provided  that  ev^ery  greenback  in  existence 
should  be  taken  out  of  circulation  and  converted  into 
interest-bearing  bonds.  They  were  only  prevented  from 
the  consummation  of  this  diabolical  purpose  by  the  force 
of  public  sentiment,  which  compelled  Congress  to  pass 
the  act  of  May  30,  1878,  forbidding  further  destruction 
of  the  leo;al  tenders. 

"12.  Notwithstanding  the  passage  of  the  act  last 
referred  to,  the  National  Bankers'  association,  the  capi- 
talists in  Boston,  New  York,  Philadelphia,  Baltimore, 
Milwaukee,  and  Chicago,  have  petitioned  Congress  to 
destrov  the  legal  tenders. 

"  In  obedience  to  their  behest,  and  utterly  regardless 
of  the  interests  of  the  industrial  classes  of  the  country, 


WHAT  CONGRESS  HAS  DONE  FOR  SHYLOCK.  245 

tlie  President  of  the  United  States,  the  secretary  of  the 
treasury,  and  the  comptroller  of  the  currency  have  all 
sent  in  to  Congress  their  official  communication  recom- 
mendine:  that  the  wreenhack  shall  be  taken  out  of  circu- 
lation.  Mr.  Bayard  in  the  Senate  and  Mr,  Lounsberry 
and  Mr.  Ballon  in  the  House  have  introduced  bills  and 
joint  resolutions  to  carry  out  these  recommendations. 

"  13.  They  now  propose  by  Mr.  Fernando  Wood's 
and  Garfield's  bills,  pending  before  Congress,  to  refund 
seven  hundred  million  of  these  non-taxable  bonds  and 
to  make  them  irredeemable  for  the  twenty  years, 

"  14.  Since  their  return  from  the  war,  the  soldiers, 
beine"  amouff  the  most  active  and  indnstrious  members 
of  society,  have  been  working  through  sunshine  and 
storm  to  pay  their  own  and  the  bondholder's  taxes  and 
the  interest  on  the  public  debt.  Wherever  a  discretion 
has  been  lodged  with  the  secretary  of  the  treasury  or 
any  other  department,  it  has  invariably  been  exercised 
in  the  interest  of  the  bondholder  and  against  the  soldier 
and  the  common  people.     ( See  note  C,  appendix. 


CHAPTER    VII. 

OUR  "FLAT-HEAD"  POLICY. 

There  is  a  tribe  of  Indians  called  "Flat-heads"  whose 
name  is  derived  from  having  their  heads  flattened  in  in- 
fancy, while  the  skull  bones  are  soft  and  pliable.  They 
are  a  very  low  and  ignorant  people,  from  the  fact  that 
the  compressed  and  distorted  skull  does  not  permit  a 
healthy  and  natural  development  of  the  brain ;  but  theit 
mental  poverty  is  in  part  compensated  by  their  ignor- 
ance and  lack  of  appreciation  of  any  higher  intelli- 
gence. 

The  female  Chinese  foot  is  encased  in  a  shoe  prison^ 
and  there  made  to  mature  without  being  permitted  to 
expand  beyond  the  dimensions  of  infancy.  Both  the 
head  of  the  Indian  and  the  foot  of  the  Celestial  adapt 
themselves  to  circumstances,  while  the  body  physical 
seems  to  suffer  little  or  no  inconvenience  from  the  dis- 
tortion of  the  extremities.  Like  a  potato  grown  between 
two  roots,  the  whole  body  grows  to  maturity  adapting 
itself  to  its  conditions,  the  process  being  so  gradual  that 
no  violence  is  experienced.  But  suppose  the  Flat- 
Heads  should  capture  a  prisoner,  aiid  should  saj,  "Look 
here,  sir,  your  head  is  'inflated,'  it  is  altogether  out  of  pro- 
portion, it  is  unlike  any  head  in  our  tribe,  it  must  be 
'contracted,'  and  brought  down  to  the  tribal  standard.'* 

How  long  after  the  process  of  contraction  commenced 

-before   sufterins:    woukl    follow?     Then  the   Flat-Head 

would  say,  "Grin  and  bear  it;  don't  suspend  the  vice- 

246 


OUE   FLAT-HEAD    POLICY.  247 

grip,  or  allow  aii}^  re-inflation.  This  comes  of  3^our  own 
folly.  You  have  permitted  a  great  over-production  of 
skull;  and  if  we  let  up  now  to  give  you  rest,  or  allow 
the  pain  to  ease,  you  will  have  to  travel  the  terrible  road 
all  over  again."  So  by  inches  the  life  is  squeezed  out  of 
the  man.  The  Chinese  might  cultivate  small  feet  for 
his  daughter,  if  taken  in  infancy,  without  much  incon- 
venience to  the  child,  but  if  he  took  a  full  grown  Amer- 
ican girl,  and  should  attempt  to  contract  her  feet  to  the 
standard  of  a  Chinese  belle,  he  would  have  a  cripple  for 
life  on  his  hands. 

So  it  is,  we  have  a  nation  of  financial  fiat-heads. 

The  business  of  a  country  always  corresponds  to  its 
money  volume.  The  financiers  of  Europe  and  America 
have  cramped  the  business  and  enterprise  of  civilization 
to  the  moulds  of  gold  and  silver  money.  For  a  hundred 
years  the  infant  brain  of  American  industry  was  cramped 
and  confined  to  the  narrow  walls  of  this  metallic  mould. 
But  when  the  war  came,  when  the  life  of  the  Government 
demanded  great  power,  and  a  more  rapid  development 
of  wealth  and  national  life-forces  than  could  be  generated 
in  the  traditional  flat-head  system,  the  pressure  was  re- 
moved. Natural  freedom  was  allowed,  labor,  skill  and 
enterprise  were  untrameled,  and  permitted  to  come  in  di- 
rect contact  with  God's  bountiful  resources,  as  the  leaden 
anchor  of  specie  was  raised,  and  the  light  wings  of  legat^ 
tender  were  spread  to  the  breezes  of  commerce. 

During  one  decade,  untrameled  and  unoppressed  by 
the  vices  of  specie  basis,  our  business  grew  into  giant 
proportions.  The  wealth  of  the  nation  doubled,  and  a 
degree  of  prosperity  prevailed  never  before  experienced. 
But  after  the  war  closed,  when  the  Government  was  no 
longer  in  danger,  when  it  was  safe  to  hamper  and  cripple 


248  A.BOR    AND    FINANCE    REVOLUTION. 

industry,  when  suicides,  privation,  idleness,  business 
prostration  and  general  banlvruptcy  might  safely  be  in- 
dulged in  for  the  gratification  of  the  financial  flat-head 
idolators,  we  were  required  to  enter  again  upon  a  life  of 
industrial  torture  and  financial  distortioii.  Our  business 
capacity  enlarged  to  the  dimensions  of  $2,000,000,000 
of  circulating  medium,  with  an  abundance  of  labor, 
skill,  machinery,  and  resources  to  keep  it  growing  for 
all  time  to  come,  was  legislated  into  the  flat-head  press 
in  1866,  with  a  view  of  compressing  it  to  ante-helium 
dimensions. 


CHAPTER  VIII. 

THE  GREAT  NATIONAL  BEAR. 

It  is  related  that  in  the  canton  of  Berne,  in  Switzer- 
land, it  had  been  cnstomary  from  time  iraniemorial,  to 
keep  a  bear  at  public  expense,  and  the  people  had  been 
taught  to  believe  that  if  they  had  not  a  bear. on  hand, 
they  would  be  undone,  and  the  country  would  go  to 
wreck  and  ruin.  So  they  endured  the  bear,  notwith- 
standing the  expense,  and  the  fatal  injury  that  he  in- 
flicted upon  pigs  and  children  that  happened  to  step 
over  the  line  of  his  jurisdiction.  It  happened  one  day 
that  bruin  sickenud  and  died  too  suddenly  to  have  his 
place  immediately  supplied  with  another. 

During  the  interim  the  people  were  amazed  and  de- 
lighted to  see  that  the  sun  continued  to  shine,  the  corn 
to  grow  and  the  vintage  to  flourish,  and  everything  went 
on  the  same  as  before,  saving  the  danger  and  expense 
of  the  bear.  So  they  came  to  the  sensible  conclusion 
not  to  keep  any  more  bears. 

With  no  more  sense,  and  at  much  greater  expense, 
the  civilized  world  has  been  harboring  and  keeping  a 
bear  for  the  last  two  thousand  years.  Every  civilized 
nation  has  had  its  bear. 

Our  revolutionary  fathers  repulsed  the  British  lion, 
but  accepted  the  embrace  of  the  English  bear,  specie 
basis.  It  has  been  an  expensive  and  dangerous  beast  to 
keep.  In  1809  its  depredations  occasioned  great  public 
distress,  and   in  several  instances  involved  the  entire 

249 


250  LABOR    AND    FINANCE    REVOLUTION. 

country  in  bankruptcy  and  ruin,  from  wliich  it  took 
years  to  recover. 

In  1814,  1819,  1825,  and  at  other  periods,  the  beast 
got  on  his  periodical  rampage,  producing  tlie  most  ter- 
rible and  disastrous  results. 

But  the  bear  must  be  kept  or  we,  like  the  peasants  of 
Berne,  would  be  undone. 

He  was  the  idol  of  civilization. 

To  him  society  offered  up  its  sacrifices  with  the  same 
devotion  that  Hindoo  mothers  yield  up  their  babes  to 
the  crocodiles  of  the  Ganges. 

One  day  he  sickened  and  died.  It  was  on  the  25th 
day  of  February,  1862. 

Devout  worshipers  troni  Boston,  New  Sork  and  Phil- 
adelphia flocked  to  Washington  to  weep  and  howl  over 
his  untimelv  death. 

They  were  frantic  and  unconsolable.  They  feared  the 
sun  would  cease  to  shine,  the  crops  to  grow,  or  the  tide 
to  ebb  and  flow. 

But  time  passed  on. 

The  sun  kept  its  course. 

The  seasons  came  and  went  just  as  of  old. 

People  prospered  as  they  never  had  before. 

Men  grew  rich. 

Labor  was  fully  employed,  well  paid,  and  not  mo- 
lested. 

Success  crowned  every  effort. 

Civilization  extended,  and  the  wilderness  disappeared. 

The  rose  blossomed  where  the  tangle  brush  grew. 

Railroads  spanned  the  unknown  waste. 

The  march  of  improvement  kept  time  to  the  music 
of  machinery  and   the  hum  of  industry. 

There 'was  no  bear  to  molest  or  make  afraid. 


THE    GREAT    NATIONAL    BEAR.  251 

Still  idolatiy,  like  the  old  man  of  the  sea,  clung  to 
the  public  mind.  Men  could  not  believe  that  pros]>eritj 
without  gold  could  be  real.  They  prayed  for  the 
return  of  their  idol,  and  warned  society  that  for  all  its 
seeming  prosperity  and  delusive  dreams  of  wealth,  cor- 
responding sacrifices  must  be  made  to  their  idol  or  the 
country  would  be  a  howling  bedlam  of  madmen  and 
f^inatics.  So  on  the  12th  day  of  April,  1866,  Keeper 
McCulloch  was  ordered  to  commence  neg-otiations  for 
a  bear.  Immense  sacrifices  of  men  and  property  fol- 
lowed. The  first  year  2,000  men  fell,  and  over  $80,000,- 
000  were  lost. 

Each  succeeding  year  the  number  of  human  sacrifices 
increased,  and  the  amount  of  pecuniary  loss  augmented, 
until  the  reinstatement  of  the  beast  in  18T9, 10,000  men 
and  firms  having  fallen,  and  $300,000,000  wealth  being 
sacrificed  in  the  previous  year. 

Now  we  have  our  blood-thirsty  god  re-installed,  and 
John  Sherman  as  high  priest. 

Over  and  above  his  depredations  on  society,  past  and 
prospective,  which  is  beyond  computation,  he  has  cost 
our  treasury  direct  $230,000,000,  for  which  our  bonds 
are  out  drawing  interest  from  labor. 

Yes,  we  have  on  our  hands  a  two  hundred  and  thirty 
million  dollar  bear,  of  no  use  to  society  but  to  eat  annu- 
ally ten  or  fifteen  million  dollars'  worth  of  food  which 
society  has  to  furnish,  and  to  be  in  fashion  with  the  idol- 
atrous nations  of  Europe,  every  one  of  which  to-day  is  a 
bleeding:  sacrifice  to  this  brutish  o-od.  There  he  stands 
watched  over  and  adored  by  John  Sherman,  devouring 
the  substance  of  the  people,  jeopardizing  commerce  and 
trade  and  menacing  labor  and  enterprise  at  every  step. 

These  be  thy  gods,  oh.  Shy  lock  ! 


CHAPTER  IX. 
ENGLAND'S  AMERICAN  POLICY. 

ENGLAND  IS   PREPARING   BY  MODERN  COMMERCIAL  MEIHODS 
TO    ABSORB    THE    SUBSTANCE    OF    AMERICA. 

It  is  officially  announced  that  William  H.  Vanderbilt 
has  sold  250,000  shares  of  the  New  York  Central  stock 
to  a  syndicate  of  New  York  capitalists,  representing  the 
heaviest  banking  houses  of  London,  and  thus  parted 
with  his  control  over  that  thoroughfare.  This  colossal 
railroad  syndicate  includes  most,  or  all,  of  John  Sher- 
man's famous  bond  syndicate,  notably  August  Belmont 
<fe  Co.,  Bliss,  Morton  &  Co.,  J.  &  W.  Seligman  &  Co., 
Drexel,  Morgan  &  Co.,  and  J.  S.  Morgan  &  Co.,  of  Lon- 
don. Every  one  of  these  firms  are  branches,  or  agents, 
of  London  bankers.  To  the  casual  reader,  or  observer, 
this  huge  transaction  may  look  legitimate  and  innocent 
enough  on  its  face,  as  an  ordinary  business  operation, 
with  no  more  significance  than  the  daily  transactions  of 
the  stock  board.  But  when  viewed  in  the  light  of  that 
policy  which  has  governed  England  for  two  hundred 
years,  by  which  she  has  accumulated  a  larger  amount  of 
capital  in  proportion  to  her  area  and  population  than 
was  ever  before  or  since  scraped  together,  it  looks  like 
an  important  step  in  the  yjrogress  of  events  long  since 
planned  to  recover  through  capital  and  diplomacy,  what 
she  lost  a  century  ago  through  bullets  and  American 
patriotism. 

252 


England's  American  policy.  253 

It  is  Eno-land's  boast  that  the  sun  never  sets  on  her 
dominions.  If  she  has  not  conquered  all  the  world,  she 
has  at  least  conquered  parts  of  all  the  world,  and  from 
conquests  comes  the  wealth  which  she  is  accumulating. 
She  subdues  weak  nations  not  to  enlighten,  Christianize, 
and  protect,  but  to  enslave  and  rob.  She  is  to-day  the 
world's  great  nationalized  pirate,  with  her  commercial 
privateers  infesting  every  sea  and  navigable  stream  on 
the  globe.  She  has  picked  the  bones  of  poor  Ireland 
dry,  and  for  years  the  air  of  India  has  been  fetid  with 
the  dead  carcases  of  the  victims  of  her  greed  and  rapac- 
ity. Her  policy  has  been  "to  buy  hides  of  her  de- 
pendencies for  sixpence  and  sell  back  to  them  the  tails 
for  a  shilling."  She  conquers  to  open  a  market  for  her 
manufactured  products,  to  obtain  a  supply  of  cheap  raw 
material,  and  to  aiford  traffic  for  her  means  of  transpor- 
tation. 

A  hundred  and  fifty  years  ago  one  Andrew  Gee  pub- 
lished in  England  a  work  on  trade,  in  which,  among 
other  things,  he  said: 

"Manufactures  in  our  American  colonies  should  be 
discouraged — prohibited.  We  ought  always  to  keep  a 
watchful  eye  over  our  colonies  to  restrain  them  from 
setting  up  any  of  the  maMufacturea  which  are  carried 
on  in  England^  and  any  such  attempt  should  he  crushed 
out  at  the  heginning. 

"As  they  have  the  providing  of  rough  materials  to 
themselves,  so  should  we  have  the  manufacturing  of 
them.  This  will  turn  their  industry  all  to  promoting 
and  raising  raw  material.  If  we  examine  into  the  facts, 
it  will  appear  that  not  one-fourth  of  their  product  re- 
dounds to  their  own  profit,  for,  out  of  all  that  comes 
here,  they  only  carry  back  clothing  and  other  necessaries 
fo;-  their  fiitnilies." 


254  LABOR    AND    FINANCE   REVOLUTION. 

During  the  eighteenth  century  the  American  colonies 
became  comparatively  independent  of  the  mother  coun- 
try. They  had  gone  somewhat  extensively  into  manu- 
facturing what  they  needed.  By  this  means  they  found 
a  ready  home  market  for  their  surplus  raw  material,  and 
to  supply  their  monetary  wants  every  colony  issued  its 
own  paper  legal  tenders,  which,  not  only  made  them 
comparatively  independent  of  England,  but  contributed, 
v^astly  to  their  growth  and  ])rosperity.  In  1710  a  law 
was  enacted  in  parliament  which  declared  that  manufac- 
turing in  the  colonies  tended  to  lessen  their  dependence 
on  Great  Britain. 

In  1750  iron  manufacturing  in  the  colonies  was  pro- 
hibited. 

In  1765  the  emigration  of  iron  artisans  to  America 
was  prohibited  by  law. 

In  1780  utensils  required  for  the  manufacture  of  wool 
or  silk  were  prohibited. 

In  1781  the  exportation  of  hats  from  one  colony  ^o 
another  was  prohibited,  and  the  number  of  apprentices 
was  limited. 

In  1782  no  artificer  in  printing  calico,  muslins  or 
linens  was  permitted  to  emigrate  to  America. 

In  1785  the  prohibition  was  extended  to  tools  used  in 
iron  or  steel  manufacture  and  to  workmen  employed. 

In  1763  the  issue  and  use  of  colonial  money  was  sup- 
pressed by  act  of  parliament. 

Their  object  was  to  secure  as  extensive  a  market  as 
possible  for  their  manufactured  products. 

To  obtain  this,  manufacturing  in  other  parts  of  the 
world  must  be  discouraged  or  prohibited. 

They  also  desired  cheap  raw  material  and  an  abund- 
ance of  it.      To  obtain  this,  manufacturing  must   not 


England's  American  policy.  255 

only  be  prevented  in  other  countries,  so  as  to  force  all 
labor  into  the  production  of  raw  material,  but  the 
money  of  all  nations  must  be  so  limited  and  restricted 
that  prices  would  remain  low,  hence  the  specie  standard 
was  established,  and  gold  deified  as  the  God-ordained 
money  of  the  world.  It  was  only  when  we  discarded 
this  standard,  and  adopted  the  legal  tender  money  of 
the  United  States,  that  we  were  really  free  and  prosper- 
ous? But  England  has  again  forced  us  to  bow  to  her 
idol.  Our  industries  are  again  in  the  coils  of  her 
deadly  embrace.  The  New  York  Tribune  boasts  that 
resumption  has  driven  hundreds  of  thousands  of  arti- 
sans from  unproductive  manufacturing  into  the  cultiva- 
tion of  the  soil  and  the  raising  of  a  surplus  for  a  foreign 
market.  How  did  it  happen  that  our  manufacturing 
became  unprofitable,  and  sent  600,000  artisans  into  the 
fields  to  compete  with  already  unprofitable  agriculture? 
A  commission  appointed  by  parliament  to  inquire  into 
the  causes  of  distress  and  disaftection  anions  English 
workingraen,  reported  as  follows: 

"  We  believe  the  laboring  classes  are  very  little  aware 
of  the  extent  to  which  they  are  often  indebted  for  their 
being  employed  at  all,  to  the  immense  losses  which 
their  employers  voluntarily  incur  in  order  to  destroy 
foreign  competition,  and  to  gain  and  keep  possession  of 
foreign  markets. 

''  The  large  capitalists  of  this  country  are  the  great 
instruments  of  warfare  against  the  competing  capitalists 
of  foreign  countries,  and  are  the  most  essential  instru- 
ments now  remaining  by  which  British  manufactures 
can  maintain  the  supremacy.  The  elements,  cheap 
labor,  cheap  and  abundant  raw  material,  and  means  of 
transportation,  are  rapidly  in  process  of  being  realized." 


256  LABOK    AND    FINANCE    REVOLUTION. 

This  report  says  that  English  manufacturers  liave  sold 
their  goods  at  an  annual  aggregate  loss  of  $100,000,000, 
in  order  to  undersell  and  break  down  foreign  competi- 
tion. This  is  why  manufacturing  has  become  unprofit- 
able in  America,  and  600,000  artisans  were  driven  into 
the  western  lands  to  raise  cheap  raw  material  for  English 
factories.  Foreign  capital  already  controls  our  banking 
institutions,  regulates  our  monetary  affiiirs,  dictates  our 
financial  legislation,  and  successfully  opposes  all  meas- 
ures inimical  to  its  interests.  It  has  come  to  pass  that 
but  few  men  can  be  elected  to  our  national  legislature, 
and  none,  to  the  position  of  chief  executive,  who  are  not 
identified  with,  or  pledged  to  the  support  of  the  bank- 
ing interest.  This  was  the  most  important  step  in  the 
plot.  The  control  over  our  financial  affairs,  so  as  to  de- 
press industry  and  discourage  enterprise,  with  the  cut- 
ting of  prices  in  England,  was  the  step  necessary  to  kill 
competition.      This  they  have  well-nigh  accomplished. 

They  have  regained  their  manufacturing  supremacy. 
They  have  procured  cheap  labor  and  an  abundance  of 
cheaj)  raw  material  in  America.  They  have  already  a 
monopoly  of  transportation  by  sea;  the  great  carrying 
trade  between  the  two  continents  being  borne  under  the 
British  flao;. 

Her  next  step  will  be  to  get  possession  and  control  of 
our  trunk  railroad  lines  from  the  seaboard  to  the  centers 
of  production;  nor  will  she  cease  until  she  succeeds  in 
monopolizing  our  inland,  as  well  as  our  ocean  commerce. 
This  monopoly  of  our  transportation  lines,  can  not  only 
make  their  own  terms  with  producers,  but  control  the 
votes  of  the  nation  as  the  Pennsylvania  railroad  has  for 
years  commanded  the  vote  and  dictated  the  legislation 
of  that  State.     It  may  be  possible  that  our  inland  trans- 


England's  American  policy.  257 

portation,  as  well  as  our  medium  of  exchange;'  will  yet 
require  the  protecting  arm  of  the  Government. 

Powers  as  great  and  dangerous  as  those  wielded  by 
banking  and  i-ailroad  monopolies,  should  not  be  exer- 
cised by  individuals  or  corporations,  much  less  by  for- 
eigners and  aliens.  These  have  already  become  too  for- 
midable for  legislatures  and  officials  to  contend  with, 
and  unless  the  people  put  forth  a  united  effort  to  save 
themselves,  their  boasted  independence  will  become  a 
phantom,  and  their  temple  will  fall  when  grappled  by 
these  giant  pirates  of  the  land  and  sea. 
17 


h 


CHAPTER  X. 

t 

THE  ARKOGAjSTCE  OF  CAPITAL. 

IT  DEMANDS  A  STRONG  GOVERNMENT — A  STRONGER 
GOVERNMENT  MEANS  A  WEAKER  PEOPLE — SHAROn's 
VIEWS — WEALTH  MUST  RULE  THE  COUNTRY,  OR  RIVERS 
OF    BLOOD    WILL    FLOW. 

There  are  many.honest  and  patriotic  Republicans  who 
sincerely  believe  that  their  party  is  as  loyal  to  popular 
libertv,  and  to  the  a-reat  industrial  interests  of  the  coun- 
try,  to-day  as  it  was  fifteen  or  .twenty  years  ago  when  it 
was  struggling  to  wrest  liberty  and  labor  from  the  des- 
potism of  slavery.  They  refuse  to  believe  that  the  ma- 
chinery of  the  Republican  party,  like  The  Tribune  of 
Horace  Greeley,  has  been  usurped  by  despots,  and  seized 
upon  by  the  enemies  of  justice,  equality  and  popular 
liberty,  who  are  using  it  for  baser  purposes  than  ever 
the  Democratic  party  was  made  to  serve  after  it  prosti- 
tuted itself  at  the  feet  of  the  Slave  Power.  When  it 
is  charged  by  the  advocates  of  the  people's  rights  that 
the  tendency  and  aims  of  the  Republican  party  are  to 
destroy  constitutional  liberty  and  to  build  up  and  pro- 
tect a  plutocracy  of  organized  capital,  to  grind  the  poor, 
and  to  oppress  and  rob  the  producing  classes,  it  is  not 
believed  by  the  Republican  masses  who  are  being  led 
blindly  to  their  own  slaughter.  But  if  they  will  not 
believe  Moses  and  the  prophets,  will  they  believe  one 
of  their  own  chosen  oracles?     The  following  from  the 

258 


THE    ARROGANCE    OF    CAPITAL.        .  259 

pen  of  Senator  Sharon,  published  in  his  own  organ, 
The  Nevada  Chronicle^i^  testimony  that  no  Republican 
can  impeach  or  deny.     He  says: 

"  We  need  a  stronger  Government.  The  wealth  of 
the  country  demands  it.  Without  capital  and  the  cap- 
italists, our  Government  would  not  be  worth  a  fig.  The 
capital  of  the  country  demands  protection;  its  rights 
are  as  sacred  as  the  rights  of  the  paupers,  who  are  con- 
tinually prating  about  the  encroachment  of  capital  and 
against  centralization.  We  have  tried  Grant  and  we 
Jcnow  him  to  be  the  man  for  the  'place  above  all  others. 
He  has  nerve.  As  President  he  would  be  Commander- 
in-Chief  of  the  army  and  navy,  and  when  the  commu- 
nistic tramjjs  of  the  country  raised  mobs  to  tear  up  rail- 
road tracks  and  to  sack  cities  on  the  sham  cry  of  '  bread 
or  blood,'  he  would  not  hesitate  to  turn  loose  upon  them 
canister  and  grape.  The  wealth  of  the  country , has  to 
bear  the  burdens  of  the  Government,  and  it  shall  control 
it.  The  people  are  becoming  educated  ujj  to  this  theory 
rapidly,  and  the  sooner  this  theory  is  recognized  in  the 
constitution  and  laws  the  better  it  will  be  for  the  peo- 
ple. 

"  Without  bloodshed,  and  rivers  of  it,  there  will  be  no 
political  change  of  administration.  The  monied  inter- 
ests of  the  country  for  selt-preservation  must  sustain  the 
Republican  party.  The  railroads,  the  banks,  the  manu- 
facturers, the  heavy  importers,  and  all  classes  of  business 
in  which  millions  are  invested,  will  maintain  the  suprem- 
acy of  the  Republican  party.  Democratic  success  would 
be  bankruptcy  to  them.  To  avert  fearful  bloodshed  a 
strong  central  Government  should  be  established  as  soon 
as  possible.'^'' 

A  little  more  frank  than  his  co-conspirators.  Senator 


260  LABOR    AND    FINANCE    KEVOLUTION. 

Sharon,  no  doubt,  reflects  the  sentiments  of  the  leaders 
of  his  party. 

The  wealth  of  the  nation  demands  a  stronger  Govern- 
ment^ for  the  capital  of  the  country  req^uires protection. 

What  is  this  Republican  idea  of  a  "  stronger  Govern- 
ment," and  what  capital  of  the  country  is  in  danger,, 
that  it  cannot  be  protected  by  oiir  present  form  of  pop- 
ular Government? 

Is  thei-e  a  crime  against  person  or  property  known  to 
society  that  is  not  amply  guarded  against  by  statutes 
and  penalties?  Have  we  not  an  ample  judiciary  and 
constabulary  in  every  city,  town,  and  hamlet  to  protect 
the  innocent  and  to  punish  the  guilty?  Does  not  cap- 
ital collect  its  interest,  its  rents,  and  its  exorbitant  rates 
of  transportation  ?  Does  it  not  foreclose  its  mortgages 
and  confiscate  its  collaterals? 

Where,  and  what,  is  the  danger  that  threatens  the 
money  kings,  demanding  a  Government  stronger  than 
that  which  has  served  us  for  a  century  and  proved  itself 
the  "  strongest  "  on  the  globe? 

On  the  frontiers,  in  the  mining  districts,  where  the 
prospects  oS  immediate  gain  attract  large  numbers  of 
the  worst  desperadoes  in  the  country,  extraordinary 
measures  are  sometimes  resorted  to.  The  law  may  be 
deemed  too  tardy  to  meet  the  demands  of  justice,  and 
the  vigilance  committee  is  substituted  as  a  necessity  of 
the  emergency.  But  does  the  Republican  party  propose 
to  transform  the  Government  into  a  great  national  vigi- 
lance committee  to  arrest  and  execute,  without  the  form 
of  law,  all  such  restless  spirits  as  squirm  under  the  iron 
heel  of  capital,  or  rebel  at  the  robbery  and  extortion  of 
oppressive  monopolies? 

No,  it  is  not  the  fear  that  the  masses  will  violate  law 


THE    ARROGANCE    OF    CAPITAL.  261 

that  demands  a  stronger  Government.  Z»w;!  that  they  will 
repeal  unjust  statutes^  and  restrain  hy  wholesome  legis- 
lation over-reaching  and  oppressive  comhinations  of  cap- 
ital from  rohhing  the  industrial  T/iasses,  and  enact  those 
more  in  accordance  with  the  spirit  of  the  Declaration  of 
Independence  and  the  rights  of  man. 

Fifteen  thousand  million  dollars  of  interest-bearing 
obligations  have  been  iilched  and  forced  from  the  peo- 
ple through  the  Republican  legislation  of  the  last  eigh- 
teen years.  This  is  the  capital  that  demands  protection 
at  the  hands  of  a  stronger,  centralized  power.  Resump- 
tion of  specie  payment  has  doubled  its  value,  and  the 
object  and  aim  of  its  owners  are  to  perpetuate  it,  and  to 
add  still  more  to  its  value  by  the  establishment  of  the 
sino^le  ffold  standard. 

After  the  Saxon  brigands  and  freebooters  had  robbed 
the  Britons  of  their  soil  and  their  subsistence,  they 
levied  annual  pensions  and  annuities  upon  their  victims 
in  amount  sufficient  to  subsist  the  robbers  and  their  pos- 
terity for  all  time  to  come  in  affluence  and  royal  splendor, 
and  in  order  to  perpetuate  this  scheme  of  rapine  and 
plunder,  they  saw  that  it  was  necessary  to  debar  their 
victims  for  all  time  to  come  from  any  voice  in  the  polit- 
ical aifairs  of  the  nation,  and  to  centralize  and  perpetu- 
ate the  sovereign  power  of  the  realm  in  the  hands  of  the 
beneficiaries  of  their  scheme  of  spoliation,  and  their 
hereditary  representatives. 

A  few  thousand  men  in  this  republic  have  combined, 
and  through  the  aid  of  deception  and  false  pretences, 
secured  legislation  which  has  put  them  in  a  position  to 
levy  contributions  upon  American  industry  as  unjust 
and  burdensome  as  those  laid  by  the  Norman  rubbers 
upon  the  labor  of  Britain.     This  combination  of  men 


262  LABOR    AND    FIXANCE    REVOLUTION. 

consists  of  the  bankers  and  railroad  companies.  They 
have  consolidated  their  interests  and  are  now  prepared 
to  enter  npon  their  gigantic  work  of  pillage. 

The  former,  controlling  the  medium  of  exchange,  and 
holding  interest-bearing  obligations  against  the  people 
which  draw  annually  $1,000,000,000  of  their  substance, 
can  control  prices,  while  the  latter,  by  monopolizing  the 
routes  and  medium  of  transportation,  together  form  a 
combination  with  ample  power,  if  unmolested,  to  reap 
the  harvest  of  every  field  of  industry,  and  every  depart- 
ment of  enterprise  and  production  in  the  country.  Bat 
to  do  this  they  need  protection — they  need  a  stronger 
Government.  Power  must  be  taken  from  the  working 
people  to  defend  themselves.  Tliose  who  are  robbed 
must  be  denied  the  means  of  defense  and  self-protectiun. 
Power  in  America,  as  in  Europe,  must  be  centralized  in 
the  hands  of  the  robbers. 

It  is  not  the  vandalism  of  the  pauper  and  the  tramp 
that  calls  for  a  stronger  Government,  but  the  freedom 
of  the  press  and  the  suffrages  of  the  outraged  millions 
need  to  be  suppressed;  for  when  the  millions  of  free- 
men become  aroused  to  the  dangers  which  threaten  their 
liberty  and  their  prosperity,  they  will  repeal  statutes 
which  sustain  robbing  monopolies.  The  ''rights  of  cap- 
ital," in  the  sense  in  which  it  is  used  by  Senator  Sharon» 
are  not  as  sacred  as  the  rights  of  the  pauper.  Every 
fortune  of  a  million  dollars  possessed  by  one  man,  is- 
made  up  of  the  substance  wrongfully  filched  from  other 
men,  forcing  them  into  pauperism.  The  pauper  is  the 
inevitable  result  of  the  millionaire.  To  be  a  millionaire 
necessitates  the  existence  of  a  thousand  paupers.  If 
30,000  men  in  America  were  millionaires  they  would 
possess  all  the  wealth  of  the  nation,  leaving  45,000,000 


THE    ARROGANCE    OF    CAPITAL.  263 

paupers.  The  tendency  of  monopoly  and  consolidated 
capital  is  to  bring  about  this  result. 

It  can  be  averted  only  by  the  immediate  and  deter- 
mined action  of  the  people  restraining  this  tendency, 
and  limiting  and  controlling  monopoly  by  such  legisla- 
tion as  will  permit  a  more  just  and  equitable  distribution 
of  the  products  of  wealth,  and  give  to  every  producer 
the  full  earnings  of  his  labor. 

The  people  need  not  be  deceived. 

The  edict  has  gone  forth. 

Capital  has  declared  war  upon  labor  and  threatens  to 
shed  rivers  of  blood  if  the  latter  does  not  consent  to  be 
robbed  and  enslaved  by  the  former. 

A  stronger  Government  means  a  weaker  people.  To 
centralize  power,  means  to  strip  the  people  of  their  lib- 
erties, their  franchises,  and  their  sovereignty,  to  confer 
them  upon  a  despot. 

Are  the  people  ready  for  their  chains? 

Their  clank  may  be  heard  in  the  halls  of  Congress. 
Don't  mistake  it  for  the  jingle  of  resumption. 


CHAPTER  XI. 
A  FARMERS'  REPUBLIC. 

TO    THE    FARMERS    OF    AMERICA. 

The  last  report  of  tlie  commissioner  of  agriculture 
estimates  the  number  of  males  of  all  occupations  in  the 
United  States  at  15,000,000,  and  that  more  than  half  of 
this  number,  to-wit,  7,600,000,  are  engaged  in  agricul- 
tural pursuits. 

That  the  total  value  of  farms,  farm  animals  and  farm 
implements  is  $13,461,200,433,  or  two-thirds  of  the  total 
productive  wealth  of  the  nation. 

Tliat  the  value  of  farm  products  and  animals  for  1878 
was  $3,000,000,000,  against  $2,800,000,000  of  mining  and 
manufacturing  products. 

Thus  it  appears  that  not  only  a  majority  of  the  peo- 
ple of  the  United  States  are  engaged  in  agriculture,  but 
a  majority  of  the  wealth  is  invested  in  it,  and  a  majority 
of  the  products  of  the  nation  is  derived  from  that 
source.  So  far,  the  farmers  are  the  predominating  class 
in  society.  They  can  have  things  pretty  much  their 
own  way,  if  they  act  in  harmon3^  There  are  also  2,900,- 
000  men  engaged  in  mining  and  manufacturing,  whose 
interests  are  identical  witli  the  interests  of  the  farmer. 
These  two  classes  constitute  two-thirds  of  the  voting 
population  of  the  countr3\  These  two  classes  produce 
all  the  wealth  and  pay  all  the  taxes,  but  exercise  little 
or  no  influence  in  shaping  the  policies  of  the  Govern- 

264 


A  farmers'  republic.  265 

ment,  or  in  disbursing  the  vast  sums  they  annually 
contribute.  These  privileges  have  been  usurped,  and 
are  exercised  by  a  class  of  non-taxed  and  non-producers, 
who  make  politics  a  profession,  and  office  an  occupation 
to  be  exercised  in  the  interest  of  clients  who  will  pay 
the  largest  fees. 

Nearly  every  lawyer  who  chooses  that  profession  for  a 
livelihood,  regards  it  as  the  only  path  to  political  pro- 
motion. Men  enter  the  legal  profession  as  a  stepping- 
stone  to  official  position.  The  first  lesson  that  a  lawyer 
is  taught  is  to  ignore  right  and  justice,  and  labor  with 
all  his  zeal  and  powers  for  a  client,  regardless  of  the 
merits  or  justice  of  his  case.  If  a  murderer  is  brought 
into  court  with  his  hands  red  with  the  blood  of  inno- 
cence, the  lawyer,  who  for  a  fee  undertakes  his  defense, 
labors  as  zealously  for  his  acquittal  as  though  he  were  as 
innocent  as  a  babe. 

The  Congress  of  the  United  States,  and  the  legisla- 
tures of  the  several  States,  have  become  political  bars, 
supported  at  the  expense  of  the  people,  to  engineer  and 
pettifog  measures  through  to  final  legislative  judgment 
in  the  interest  of  capitalistic  stock  jobbers  and  financial 
gamblers.  If  a  clan  of  Wall  Street  gold  gamblers  de- 
sire the  money  of  the  country  to  be  depreciated  so  they 
may  gamble  and  wrench  from  society  vast  sums  by  gold 
speculations,  they  have  simply  to  employ  the  ablest  at- 
torneys in  Congress,  have  a  bill  passed  to  make  all 
duties  on  imports  and  interest  on  the  bonds  payable  in 
gold,  and  then  take  from  the  greenback  the  legal  tender 
quality  of  money  so  as  to  depreciate  it  and  furnish  a 
market  for  their  gold.  The  people  are  thus  defrauded 
because  they  have  no  representation  in  that  body.  It  is 
composed  of  an  army  of  lawyers.     If  one  or  a  dozen 


266  LABOR    AND    FINANCE    REVOLUTION. 

get  a  big  job  from  Yanderbilt,  Scott,  Belmont,  the 
Rothschilds  or  the  national  banks,  it  goes  through  by 
courtesy,  those  not  directly  employed  and  paid  not 
knowing  how  soon  they  may  have  a  paying  case,  and 
need  a  similar  courtesy. 

Look  at  the  legislation  for  the  past  sixteen  years. 
It  has  been  a  series  of  jobs  for  the  benefit  of  capitalistic 
monopolies,  and  not  one  act  for  the  benelit  of  the  farmer 
and  the  manufacturer. 

On  the  other  hand,  the  legislation  of  the  past  few 
years,  made  in  the  interest  of  banks,  bondholders,  cap. 
ital  and  railroad  monopolies,  has  had  the  intended  ef- 
fect o»f  adding  billions  to  the  wealth  of  these  congres- 
sional clients,  everv  dollar  of  which  has  been  filched 
from  the  tax-paying,  producing,  misrepresented  farmers 
and  manufacturers. 

Congress  and  legislatures  have  ceased  to  represent  the 
people  ;  the  lobby  alone  constitutes  their  clientage. 
This  is  not  to  be  wondered  at.  They  are  not  only  en- 
couraged in  it  by  re-elections,  but  are  paid  for  it  by  the 
beneficiaries  of  their  venalitj'. 

The  producing  classes  have  the  power  of  protection 
and  redress  in  their  own  hands,  but  notwithstanding 
they  have  been  robbed,  stripped  and  flayed  by  inferior 
numbers,  they  march  to  the  polls  like  lambs  to  the 
slaughter,  and  under  the  lash  of  party  discipline  vote 
for  the  same  men  and  measures  which  have  ruined  them, 
and  thus  license  them  to  continue  their  nefarious  schemes 
of  plunder. 

During  the  years  of  our  greatest  industrial  and 
commercial  prosperity,  eleven  millions  of  laborers,  arti- 
sans, agriculturists,  mechanics  and  manufacturers, 
wrought  annually  from  the  raw  material,  the  earth  and 


A  farmers'  republic.  267 

its  resources,  the  following  products  and  values  (as  gath- 
ered from  reliable  statistics),  for  use  and  general  distri- 
bution, to  add  to  the  already  accumulated  wealth  of  the 
nation : 

Products   of  artisans,   machinists,  carpenters,  black- 
smiths,   masons   and   the  lilve. $1,000,000,000 

Leather  manufactures 226,000,000 

Iron  and  steel  maoufactures 120,000,000 

Cotton  manufactures 71.000,000 

Woolen  manufacturing 66,000,000 

Unskilled  labor  and  distributors 1,600,000,000 

Fisheries 100,000,000 

Railway  service -. 360,000,000 

Agriculture 8,300,000,000 

Making  the  gross  product  of  the  country $7,000,000,000 

This  wealth  was  produced  by  the  heads  of  families 
and  other  persons  representing  98  percent,  of  the  entire 
population  of  the  United  States. 

It  was  at  a  time  when  gold  and  silver  were  entirely 
out  of  use  as  a  medium  of  exchange,  and  a  large  and 
generous  supply  of  greenbacks  constituted  the  money 
of  the  realm.  The  volume  of  the  circulating  medium 
approximated  $2,000,000,000.  The  only  real  nses  the 
country  had  for  this  inoney  was  to  pnrchase  the  raw 
material,  pay  for  the  labor,  and  to  distribute  the  above 
products.  The  eleven  millions  of  wealth-producers  were 
alone  interested  in  the  quality  and  quantity  of  this  im- 
portant tool  of  trade. 

No  man  or  set  of  men,  who  were  not  engaged  in 
actual  production,  had  a  right  to  a  voice  in  determining 
what  kind  or  quantity  of  tools  the  producers  should  be 
supplied  with.  For  the  first  time  in  the  history  of  the 
nation,  the  wealth-producers  were  accidentally,  through 
the  emergencies  of  the  war,  provided  with  anything  like 
an  adequate  supply  of  money.  Even  this  supply  was 
met  with  bitter  and  powerful  opposition  by  parties  both 


268  LABOR    AND    FINANCE    REVOLUTION. 

in  this  and  foreign  countries,  not  by  producers  of  wealth, 
but  by  i>:amblers  in  the  product  of  others'  toil.  Not  one 
of  the  ninety-eight  per  cent,  of  the  people  objected  to 
the  increase  of  the  money  volume,  or  complained  that 
greenbacks  had  been  substituted  for  gold.  After  the 
war,  when  the  nation's  existence,  and  the  perpetuity  of 
the  union  were  no  longer  in  jeopardy,  a  system  of  con- 
traction was  inaugurated,  to  squeeze  out  of  use  and  cir- 
culation the  excess  of  money  which  the  war  had  forced 
into  the  channels  of  trade  and  production.  So  in  his 
report  of  December  4,  1865,  Hugh  McCuUoch  said  to 
Congress: 

"The  issue  of  United  States  notes  as  lawful  money  -was  a  measure 
of  expediency,  doubtless,  and  becessary  in  the  great  emergency  in 
which  it  WKS  adopted,  but  this  emergency  no  longer  exists,  and  how- 
ever sat iKfactonj  these  notes  may  be  as  a  circulating  medium,  and  how- 
ever desirable  may  be  the  saving  of  interest,  these  considerations  will 
not  satisfy  a  departure  from  that  construction  of  the  constitution 
which  is  "essential  to  the  equal  and  harmonious  working  of  our 
peculiar  institutions^ 

The  "peculiar  institutions"  which  Mr.  McCuUoch  re- 
ferred to  as  being  unbalanced  by  the  excess  of  war 
money,  were  not  those  of  labor,  enterprise  and  produc- 
tion, for  which  alone  money  is  required,  but  the  banking 
institutions,  the  gambling  dens  of  the  Money  Power, 
whose  nefarious  occupation  was  gone,  and  whose  sources 
of  robbery  were  cut  olf,  while  the  Government  stood 
between  them  and  the  producer,  and  supplied  the  latter 
with  ample  means  of  production.  These  were  the  "pecu- 
liar institutions,"  from  one  of  which  in  Indiana  Mr. 
McCuUoch  was  called  to  Washington  to  place  in 
"equal  and  harmonious  working  order  again."  He  adds: 

"The  rapidity  with  which  the  Government  notes  can  be  withdrawn 
will  depend  upon  the  ability  of  the  secretaries  lo  dispose  of  securities. 
The  secretary  therefore  respectfully  hut  most  earnestly  recommends, 

'First,  That  Congress  declare  that  the  compound  interest  notes, 
shall  cease  to  be  a  legal  tender.  Second,  That  the  secretary  be  author 


A  farmers'  republic.  269 

ized  to  sell  bonds  of  the  United  States  bearing  interest  at  a  rate  not 
exceeding  6  per  cent. /or  the  jnirpose  of  retiring  not  only  compound 
interest  notes,  hut  the  United  States  notes. 
'■'■The  first  thing  to  be  done  is  to  edahlish  a  policy  of  contraction^ 

This,  Congress  established  by  resolution  on  the  IStli 
of  December,  1S65. 

How  many  of  theelev'6n  millions  of  producers,  toiling 
in  their  shops  and  factories,  delving  in  the  subterranean 
store  houses  of  the  earth,  or  bending  their  backs  to  the 
harvest  sun,  petitioned  Mr.  McCulloch  to  make  these 
suggestions  to  Congress  on   its  meeting? 

How  many  of  these  millions  asked  that  the  thing  for 
which  they  were  all  toiling  might  be  made  more  scarce 
and  difficult  to  obtain? 

How  many  of  them  prayed  that  instead  of  receiving 
greenbacks  for  their  products,  they  might  be  made  to 
pay  a  semi-annual  gold  bonus  to  have   them  destroyed? 

How  many  of  them  voluntarily  consented  to  have  the 
value  of  their  property  depreciated  one-half  and  the 
value  of  their  products  reduced?  How  many  of  them 
consented  to  be  turned  into  the  streets,  their  families 
into  the  poor  house,  a  hundred  thousand  bankrupted — 
and  the  most  fortunate  among  them  to  be  taxed  beyond 
their  ability  to  pay — simply  to  conform  to  a  system  of 
contraction,  for  the  benefit  of  whom? 

Reader,  do  you  believe  a  single  laborer  or  producer, 
or  manufacturer  or  a  miner,  a  merchant  or  a  transporter 
of  merchandise,  a  farmer  or  a  mechanic,  would  have 
voted  for  this  measure  if  he  had  been  called  upon,  and 
had  known  the  result?  Not  one.  Not  one  of  the  eleven 
millions  asked  for  it  or  was  even  consulted  in  regard  to 
it. 

Outside  of  the  eleven  millions  of  producers  is  a  class 
— two  per  cent,  of  the  population — who  live  off  of  labor, 


270  LABOR   AND    FINANCE    REVOLUTION. 

controlling  and  gambling  in  its  necessities.  A  class 
who  "  weave  not  neither  do  they  spin,  yet  Solomon  in 
all  his  glory  was  not  arrayed  like  one  of  these." 

A  class  who  never  added  one  farthing  to  the  wealth 
of  the  world,  who  are  not  entitled  to  handle  a  dollar  of 
money,  never  having  produced  its  equivalent,  as  ex- 
empt from  taxation  as  infants,  and  having  to  bear  no 
more  risks,  burdens,  or  responsibilities  in  the  affairs  of 
the  Government  than  the  inmates  of  the  poor  house, 
arrogate  to  themselves  not  only  the  governing  and  law- 
making power,  but  the  right  to  control  and  monopolize 
the  most  important  instrument  of  production,  with  which 
they  may  gamble  and  win  the  product.  During  all  the 
dark  days  of  contraction,  while  the  wealth  products  of 
labor  were  shrinking  in  a  direct  ratio  with  the  shrink- 
age of  the  money  volume,  the  usurer's  lamps  burned 
brighter  and  brigter  as  the  purchasing  capacity  of  his 
interest  dollars  expanded  to  absorb  the  shrinking  value 
of  labor  products.  As  men  of  enterprise  and  produc- 
tion fell,  the  gambler  rose  higher  and  higher  on  the 
prostrate  forms  of  his  victims. 

As  the  wrecks  of  productive  enterprises  increased, 
the  foundations  of  banking  institutions  multiplied.  As 
the  wages  of  labor  and  prices  of  products  diminished, 
the  value  of  interest  and  interest  obligations  augmented. 

As  the  garments  of  the  laborer  and  his  wife  and  little 
ones  faded  and  fringed,  those  of  the  gambler  and  his 
household  changed  to  purple  and  fine  linen. 

As  the  wolves  of  want  and  starvation  gathered  at  the 
doors  of  enforced  idleness,  pomp  and  luxury  abounded 
in  the  temples  of  Mammon. 

Here  is  the  proof.  A  prominent  Iowa  farmer,  Hon. 
Samuel  Sinnett,  wrote,  in  1878: 


A    FARMERS     KEPUBLIC. 


271 


"The  prices  of  some,  articles  are  eighteen  per  cent, 
lower  than  thej  were  before  the  war.  Corn  has  not  been 
so  low  since  1845,  except  in  1861,  Cotton  not  so  low  in 
twentj-three  years,  and  mess  pork,  not  since  1844. 
These  prices  render  the  farmer  hopeless,  destroy  liis 
energy,  and  dwarf  his  manhood  nntil  he  only  seeks  to 
struggle  along  from  year  to  year  without  trying  to  keep 
up  his  improvements,  from  the  fact  that  all  the  enter- 
prising of  this  class  are  becoming  bankrupts,  and  his 
real  estate  is  shrinking  in  value  while  he  finds  himself 
actually  burdened  with  products  that  will  not  net  him 
the  price  of  production.  At  Des  Moines  the  average 
price  of  pork  (live  hogs)  is  two  dollars  per  hundred, 
corn  from  twelve  to  fifteen  cents,  hay  from  two  to  four 
dollars  per  ton,  and  other  products  in  proportion. 

"  Now,  I  assert  that  none  of  these  articles  can  be  pro- 
duced for  less  than  fifty  per  cent,  in  advance  of  these 
prices.  No  farmer  in  the  West  expects  to  receive  any 
interest  on  the  capital  he  has  invested  in  his  farm  under 
present  prices,  and  as  many  of  them  are  in  debt,  and 
their  farms  mortgaged,  it  is  easy  to  perceive  that  ulti- 
mate ruin  must  soon  come. 

Tiie  New  York  Journal  of  Commerce,  January  1, 
makes  a  comparison  of  prices  in  tha'.  city  for  a  decade, 


with  the  following 

showin 

g: 

PRODUCTS. 

1868. 

1878. 

Flour    -- 

$8  75  to  |9  50 

$1  40 

.16  cts. 

$24  00 

$21  00 

$32  00 

.45  cts. 

.19  ets. 

$3  10  to  $3  50 

Oats 

Cott(jn  1)61"  lb 

.34  cts. 
.07  els. 

Hay,  per  ton. 

Mess  Pork        

|9  00 
$7  05 

Mess  Beef 

Butter          

$14  50 
.10  cts. 

Cheese -  -  - 

— rfi — — 

.8  3  7  cts. 

272 


LABOR    AND    FINANCE    REVOLUTION. 


The  Boston  Advertiser  published  a  table  of  prices  in 
tliat  city  on  January  1,  1879,  as  compared  with  those  of 
1860,  as  follows: 


PRODUCTS. 

1860. 

1879. 

Mess  Pork 

|17  to  |18 
$11  05 
.13  cts. 
.13  cts. 
.70  cts. 

$8.50  to  $9 

$1U  00 

.06  to  .07  cts. 

nyi  cts. 

.35  to  48  cts. 

Mess  Beef 

Lard 

Hams 

Cora 

While  these  products  have  declined  in  value  nearly 
one-half  since  the  specie  payment  period  of  1860,  and 
their  producers  are  the  bearers  of  the  great  bulk  of 
the  tax  burden,  the  national  tax  has  increased  from 
$56,054,599  in  1860,  to  $2.37,446,776  in  1878,  while 
state,  county,  town  and  municipal  taxation  has  at  least 
doubled. 

Under  the  finance  system  which  has  produced  this 
condition  of  things,  and  which  both  the  old  political 
parties  are  pledged  to  perpetuate  and  aggravate  by  still 
more  stringent  legislation,  what  hope  is  there  for  the 
farmer?  As  low  as  prices  are  and  daily  shrinking,  the 
policy  of  the  Money  Power  is  forcing  upon  the  farmer 
competition  more  destructive  to  his  interests  than  Chi- 
nese immigration  is  to  the  labor  of  the  Pacific  coast. 

But  England's  policy  is  "cheap  labor,  cheap  bread."  and 
she  is  carrying  it  out  in  the  United  States  throusrh  the 
agency  of  her  capital  in  the  hands  of  leading  politicians, 
with  as  much  ease  as  she  does  in  India  and  Ireland. 
The  policy  of  contraction  as  expressed  by  that  eminent 
member  and  representative  of  the  English  Cobden  Club, 
David  A.  Wells,  in  the  following  words,  has  done  the 
work : 


ji.  farmers'  republic.  273 

"  Discarding  all  indirect  mellinds,  I  would  adopt  what  may  be  called 
the  'crematiou'  process,  or  I  would  have  it  eiij>iQed  on  the  secretary 
of  the  treasury  to  destroy  by  burnins^  on  a  given  day  of  every  week, 
commencing  at  the  earliest  practicable  moment,  a  certain  amount  of 
legal  tender  notes,  fixing  the  minimum  at  not  less  than  $500,000  per 
week." 

Having  portrayed  the  present  and  prospective  condi- 
tion of  the  American  farmer  under  the  Demo-Republi- 
can finance  policy,  and  the  causes  which  have  produced, 
and  must  inevitably  perpetuate  if  not  aggravate  it,  let 
us  see  what  effect  this  same  policy  has  had  upon  the 
prosperity  of  that  other  class  who  reap  not,  neither  do 
they  spin. 

During  the  long  tedious  years  of  ruin  and  bankruptcy 
among  farmers  and  proditcers,  from  1866  to  1878,  Wil- 
liam H.  English,  the  Democratic  nominee  for  Yice 
President,  was  President  of  the  First  National  Bank  of 
Indianapolis.  Upon  retiring  from  that  trust,  in  1877, 
he  made  a  report  to  the  stockholders,  from  which  the 
followinsf  is  an  extract: 

"  I  congratulate  the  officers  and  stockholders  of  our  enterprise. 
The  bank  lias  bien  in  operation  fourteen  years  under  my  control, 
with  a  capital  stock  of  $500,000.  In  the  meantime,  it  has  volunta- 
rily returned  $500,000  of  cajiital  stock  back  to  its  stockholders,  be- 
sides paying  them  in  dividends  $1,49K,250,  part  of  vvliich  was  in  iio'<d; 
and  I  now  turn  it  over  to  you  vvitii  a  capital  unimpaired  and  $327,000 
of  the  undivided  earnings  on  hand.  To  this  may  be  added  liie  pre- 
•miums  of  United  States  bonds  at  present  prices,  amounting  to  $86,- 
000,  besides  quite  a  large  amount  for  lost  or  destroyed  bills." 

The  items  of  profits  are  as  follows: 

Returned  to  stockholders,  capital $500,000 

Dividends  to  stockholders 1,496,250 

Undivided  earnings 3'<;7,000 

Premiums  on  bonds 36,1)00 

Lost  or  destroyed  bills 24,000 

Total $2,383,250 

The  New  York  Commercial  Adve?'tiser  gives  the  ac- 
cumulation of  ten  men  and  firms  of  that  city  for  the 
year  of  1879,  as  follows: 
18 


274  LABOK    AND    FINANCE    REVOLUTION. 

The  Vandeibilt  estate $30,000,000 

Jay  Gould 15,000,000 

RusselSage 10,000,000 

Sidney  Dilloa 10,000,000 

James  R.  Keene 8.000,000 

The  First  National  Bank 2,000,000 

Dexter.  Morgan  &  Co 2,000,000 

Three  or  four  others,  each 3,000,000 

Total $80,000,000 

Not  a  dollar  of  tins  vast  sum  was  produced  or  created 
by  the  men  who  accumulated  it,  but  every  penny  was 
taken  from  wealth  producers  without  a  farthing's  con- 
sideration. It  required  the  labor  of  400,000  men  daily, 
for  a  vear,  to  earn  this  amount  over  and  above  the  means 
of  their  daily  subsistence.  Without  any  increase  in  the 
aggregate  wealth  of  the  country,  these  ten  men  and 
firms  were  able  to  rake  into  their  coffers  eighty  million 
dollars  that  was  produced  by,  and  justly  belonged  to, 
other  men.  Througli  cunningly  contrived  schemes  and 
systems,  backed  up  and  sustained  by  special  legislation, 
a  few. hundred  of  these  vampires  absorb  annually  from 
production  $1,000,000,000,  and  with  each  year  their 
pow'ers  of  absorption  increase  in  a  compound  ratio.  It 
is  only  a  question  of  time,  if  their  machinery  is  not  bro- 
ken up  and  their  schemes  of  plunder  checked,  when  they 
will  possess  the  entire  wealth  of  the  nation,  with  a  mort- 
gage on  societ}'^  for  all  future  increase,  save  a  bare  sub- 
sistence for  the  millions  of  toilers.  The  condition  of 
Ireland  and  the  laboring  masses  of  England  is  sufficient 
to  stimulate  American  toilers  to  throw  off  the  yoke 
that  is  oppressing  them,  to  break  the  fetters  that  are 
being  riveted  upon  them,  while  they  have  strength  to 
emancipate  and  save  themselves,  and  before  they  find 
themselves  in  the  helpless  condition  of  their  fellows 
across  the  sea. 


A  farmers'  kepublic.  275 

All  this  from  the  neglect  of  farmers  to  see  that  they 
are  honestly  represented  in  Congress  and  State  Legis- 
latures. 

They  alone  are  responsible  for  filling  Congress  with 
lawyers  and  l^ankers. 

The  Congress  which  inaugurated  the  present  financial 
policy  of  the  Government,  was  made  up  of  250  bankers 
and  lawyers  aad  22  farmers. 

The  Congress  previous  to  the  present,  was  made  up  of 
189  bankers,  99  lawyers,  14  merchants,  13  manufacturers, 
7  doctors,  1  mechanic.  Farmers,  not  one!  the  money 
power  having  76  majority  over  all  others. 

Who  wonders  that  the  people's  interests  are  neglected? 

What  can  one  mechanic  do  for  40,000,000  laborers 
against  two  hundred  non-producers  whose  interests  are 
to  roh  industry? 

The  Government  to-day  represents  a  Money  Power 
which  occupies  the  Executive  chair,  fills  all  imjiortant 
positions  in  subordinate  departments,  and  enacts  all  the 
laws. 

It  laughs  at  our  boasted  sovereignty,  and  snaps  its 
fingers  at  our  ballot-boxes. 

It  selects  and  puts  in  nomination  its  own  tools,  and 
deceives  the  people  with  the  idea  that  an  election  is  an 
expression  of  their  will. 

It  has  protected  itself  against  the  possibility  of  taxa- 
tion by  a  contract  with  the  Government  before  it  became 
its  creditor. 

It  has  obligated  the  Government  to  contribute  to  it  all 
the  surplus  increase  of  wealth  and  then  destroyed  the 
currency  of  the  country  to  prevent  the'  people  from 
liquidating  the  obligations. 

It  has  added  millions  of  dollars  to  its  own  strengrth 


276  LABOR    AND    FINANCE    REVOLUTION. 

and  in  a  corresponding  ratio  weakened  the  people  and 
deprived  them  of  the  means  of  defense. 

Partisan  follies  have  gone  to  seed,  and  labor  and  en- 
terprise are  reaping  the  harvest. 

The  people  have  loaned  to  their  enemy  the  weapons 
of  their  defense.  They  have  unlocked  their  doors  and 
set  thieves  to  guard  their  treasures,  and  now  as  soon  as- 
the  nominations  of  1880  are  flashed  across  the  continent, 
every  cringing  partisan  slave  rushes  to  lick  the  hand 
still  raised  to  shed  the  remaining  blood  in  labor's  veins. 

And  this  in  a  land  where  the  majority  inherit  abso- 
lute sovereignty,  but  basely  submits  to  be  led  or  driven 
as  beasts  of  burden  under  the  Democratic  or  Republican 
lash  in  the  hands  of  gamblers  and  political  slave  masters. 


CHAPTER  XII. 
CONCLUSION. 

THE    LESSONS    OF    HISTOKY. 

Rome  rose  to  the  zenitli  of  her  glory  on  the  wings  of 
two  thousand  million  dollars  of  Hat  money,  possessing 
little  or  no  intrinsic  value,  and  remained  there  so  long 
as  she  maintained  this  tool  of  exchange,  based  on  a  per 
capita  ratio. 

It  was  only  after  her  nilers,  coming  in  possession  of 
gold  and  silver,  plundered  from  the  victims  of  conquest; 
established  the  system  of  intrinsic  value  money  on  a 
volume  of  the  precious  metals  less  than  $200,000,000, 
did  her  glory  wane,  and  finally  disappear  in  the  night 
of  the  Dark  Ages. 

Whv  did  she  make  this  chansfe?  Because  the  owners 
of  the  precious  metals  saw  that  by  limiting  the  money 
to  gold  and  silver,  they  could  convert  their  stolen  tro- 
phies into  an  engine  to  rob  their  own  people.  The  pro- 
cess of  contraction  was  set  in  motion.  A  day  was  set 
when  the  public  revenues  were  to  be  collected  in  gold 
and  silver.  The  money  which  had  made  Rome  what  she 
was,  was  degraded  by  the  very  hand  it  had  made  strong. 
It  began  to  depreciate  in  value.  As  gold  and  silver  were 
scarce,  prices  declined.  Labor  was  thrown  out  of  em- 
ployment. The  land  was  filled  with  bankrupts,  and  soon 
became  overrun  with  tramps  and  bandits.  The  historian 
says  of  the  times: 

"The  people  gave  themselves  up  in  despair  in  the  fields,  as  beasts 

277 


278  LABOR    AND    FINANCE    REVOLUTION. 

of  burden  lie  down  beneath  their  load  and  refuse  to  rise.  The  dis- 
integration of  society  was  almost  complete.  All  public  spirit,  all 
generous  emotions,  all  noble  aspirations  of  man  shriveled  and  disap- 
peared as  the  volume  of  money  shrunk,  and  prices  fell.  As  men  de- 
cayed wealth  accumulated  in  the  hands  of  the  few.  Not  only  did 
whole  provinces  become  the  property  of  one  man,  but  usury  existed 
in  so  frightful  a  form  that  even  the  virtuous  Brutus  received  sixty 
per  cent,  for  the  use  of  money." 

Pliney  says:  " These  colossal  fortunes  whicli  ruined 
Italy,  were  due  to  the  concentration  of  estates  through 
USURY,  so  scarce  was  money." 

But  Italy  revived,  and  by  what  means?  She  discarded 
her  gold  and  silver  basis  and  expanded  her  paper  cur- 
rency. She  arose  from  her  sleep  of  a  thousand  years, 
and  on  the  wings  of  her  fiat  credit  tokens,  has  well  nigh 
regained  her  lost  glory. 

She  has  multiplied  her  commerce  four  fold,  and  her 
railwaj^s  seven  fold,  tunneling  the  Alps  and  the  Appe- 
nines  and  building  hundreds  of  miles  through  and  over 
the  adamantine  rock  of  her  mountains.  She  has  set  her 
millions  of  beggars  and  tramps  to  work  in  productive 
enterprise,  and  added  hundreds  of  millions  to  the  wealth 
of  the  kingdom,  which  is  as  real  and  permanent  as 
though  it  had  been  produced  by  the  aid  of  gold,  instead 
of  paper. 

In  1797,  the  wars  in  which  England  was  engaged, 
forced  her  to  haul  in  her  gold  and  silver  anchors,  and 
spread  her  fiat  sails  to  the  breeze.  The  result  was  her 
revenues  rose  from  $115,000,000  in  1797  to  $360,000,000 
in  1815.  At  the  time  England  suspended,  her  currency 
volume  all  told,  including  coin  and  paper,  aggregated 
about  ff45,000,000.  Under  suspension,  it  gradually  in- 
creased to  $127,000,000.  The  efi'ects  of  this  expansion 
is  expressed  by  Sir  Archibald  Allison  in  the  following 

Words: 
•'Ushered  in  by  a  combination  of  circumstances  the  most  calami- 


CONCLUSION.  279 

* 

tous,  both  with  reference  to  external  security  and  internal  industry,  it 
terminated  in  A  blaze  of  glory  and  flood  of  prosperity  which  liave 
never,  since  the  beginning  of  the  world,  descended  upon  any  nation." 

A  writer  in  the  North  American  Review,  speaking 

of  this  period,  sa^-s: 

"The  conquests  in  aits  and  arms  during  the  eighteen  years  of  ex- 
pansion of  pure  fiat  credit,  were  without  example  in  the  history  of 
England,  and  her  progress  in  wealth  and  power  was  without  a  par- 
allel in  the  history  of  tlie  world.  She  won  the  sovereignty  of  the 
seas  at  Trafalgar,  and  the  first  military  place  in  history  at  Waterloo. 
Slie  became,  during  this  period  matchless  in  the  possession  of  every 
incident  of  greatness,  wealth  and  power." 

During  this  period  of  fiat  paper  money,  England  con- 
quered the  world  of  commerce  and  expanded  four  fold 
her  diversified  industries.  But  her  dangers  having 
passed,  she  relapsed  again  into  the  death-damps  of  spe- 
cie basis,  cast  her  gold  anchor,  and  furled  her  fiat  sails 
which  liad  wafted  her  to  glory. 

A  day  of  resumption  was  set. 

Contraction  commenced  in  1815,  and  wrecked  fortunes 
marked  its  pathway.  Money  became  scarce,  enterprises 
became  crippled,  credits  were  drawn  upon,  debts  multi- 
plied, factories  were  compelled  to  suspend  operation, 
men  were  thrown  out  of  employment,  starvation  over- 
took the  poor,  bread  riots  ensued,  and  the  army  was  in- 
creased to  shoot  down  the  famishing  thousands  who 
souo-ht  bread  at  the  risk  of  their  lives  and  liberties.  Al- 
lison  says: 

"  In  hundreds  of  cases,  from  the  tremendous  reduction  which  now 
took  place,  landed  estates  b  irely  sold  for  as  much  as  would  pay  off 
the  mortgages,  and  hence  the  owners  were  stripped  of  all,  and  left 
beggars. 

"  In  August,  1820,  S2,r<^  <Ao?isa/irZ  starving  'rioters'  assembled  in 
Manchester,  demanding  bread,  when  they  were  dispersed  by  the 
troops,  many  of  whom  were  shot  dead." 

Why  did   England   abandon   the  policy   which    had 

wrought  such  wonderful  prosperity,  for  the  old,  which 

brouijht  ruin  and  desolation? 


280  LABOR   AND    FINANCE    REVOLUTION. 

Because  she  was  ruled  by  a  fixed  income  class,  whose 
annuities  would  bring  them  but  half  as  much  when 
prices  were  high,  as  they  would  when  prices  were  low. 
To  double  the  valne  of  their  incomes,  they  had  to  de- 
press the  values  of  everything  else,  and  to  do  this,  the 
volume  of  money  must  be  diminished,  and  to  secure 
such  diminution,  and  make  it  permanent,  the  single  gold 
standard  was  established  in  1816,  and  now  30,000  men 
who  fatten  upon  usury  have  come  into  possession  of  the 
soil  which  was  then  owned  by  1,750,000  farmers. 

After  the  Franco-German  War,  France  in  order  to 
pay  her  $1,000,000,000  indemnity  to  Germany,  aban- 
donded  her  coin  basis,  and  expanded  her  irredeemable 
paper  to  the  extent  of  $640,000,000,  which  was  kept  at 
par  by  being  honored  and  received  by  a  prostrate  nation, 
which  is  to-day  the  most  prosperous  in  Europe. 

Germany  on  the  other  hand,  free  from  debt,  and  hav- 
ing received  her  indemnity  from  P' ranee,  adopted  the 
English  system  of  gold  basis,  and  is  as  thoroughly  con- 
quered and  subjugated  thereby,  as  was  France  by  the 
victorious  arms  of  the  Prussians. 

The  United  States  presents  the  next  lesson  to  the 
thoughtful  student.  From  a  height  of  prosperity,  in 
1866,  under  the  same  system  that  raised  Rome  and  Eng- 
land to  their  most  exalted  positions,  and  that  which  to-day 
places  France  and  Italy  foremost  in  the  rank  of  Euro- 
pean prosperity,  this  country  has  tallen,and  is  gradually 
sinking  to  the  level  of  those  that  have  gone  before  her 
from  the  same  cause.  Our  mines  neglected,  and  filling 
with  water  and  damps.  Our  shipyards  silent.  Our  fur- 
nace fires  smouldering.  Our  land  covered  wi  h  tramps, 
burglars  and  mortgages.  Our  prisons  and  alms  houses 
filled  to  overflowing. 


CONCLUSION. 


281 


Our  tax  burdens  increasing  as  values  shrink  and  fade 

away. 

As  we  had  more  tlian  doubled  the  accumulations  of 
two  centuries  during  the  decade  from  1865  to  1875,  we 
required  double  the  currency  the  latter  year  that  we  did 
the  former,  but,  instead  of  receiving  it,  we  were  de- 
prived of  the  larger  proportion  of  what  we  had  in  1865. 

We  contracted  our  currency  at  the  very  time  when  an 
opposite  jDolicy  was  necessary  to  retain  the  equilibrium 
of  prices,  with  the  increasing  demand  for  labor  and  pro- 
ducts. Why  did  we  abandon  a  policy  that  had  proved 
so  beneficial,  without  an  evil  result  to  detract  from  its 
merits?  For  the  same  reason  that  Rome,  England  and 
Germany  adopted  the  gold  basis,  viz.:  to  depress  gen- 
eral prices  and  values,  that  the  value  and  purcliasing 
power  of  the  usurer's  harvest  miglit  be  enhanced  and 
augmented  so  as  to  rob  the  people  of  the  accumulations 
of  fifteen  years  of  unparalleled  production  and  prosperity, 
and  to  reap  the  annual  harvest  of  labor  for  all  time  to 
come. 


» 


THE  DEMON  TASK  MASTER. 


LUCIUS  G0S8. 

Why  this  universal  wailing, 

Over  all  this  land  prevailing, 
This  entreaty  unavailing  ?    Why  this  gloom  and  dark  desoair  ? 

See  the  sun  of  hope  is  setting! 

Man  his  brother  is  forgetting. 
And  a  curse  is  slowly  falling 

On  this  land  of  promise  rare; 
And  the  faces  are  appalling, 

That  were  once  so  briglit  and  fair — 

Want  and  misery  everywhere ! 

Mark  the  toiler,  sowing,  reaping, 

And  the  golden  sheaves  upheaping. 
What  a  hidden  monster,  sweeping  for  his  own  insatiate  maw. 

Gathers  fast  and  faster,  faster. 

Though  privations  and  disaster 
Smite  the  weary,  sweating  toiler 

Till  the  pangs  of  hunger  gnaw; 
Never  does  the  fierce  despoiler 
His  rapacious  grasp  withdraw; 

Greed  so  cruel  knows  no  law. 

Hear  the  workshop's  ceaseless  clatter, 
Hear  the  workmen's  footsteps  putter. 

When  they  join  or  quickly  scatter,  when  to  each  a  task  is  shown; 
Each  a  burden  carries,  double, 
Load  of  toil,  and  load  of  trouble; 

For  an  iron  master  watches 
From  a  secret  door  unknown ; 

From  each  mouth  he  quickly  snatches 
Every  w^ord  and  meaning  tone- 
He  is  master,  here,  alone. 

How  the  pistons  heave  and  tumble. 

How  the  wheels  do  drum  and  rumble? 
How  obedient— not  a  grumble  when  those  brawny  arms  control. 

Strange,  that  while  such  puny  muscle 

Rules  so  surely  all  this  bustle, 
A  more  potent  power,  uncanny. 

Rules  still  surer  brain  and  soul ; 
Strange,  indeed,  the  brawny  many 
Let  a  baleful  power  control 

Wealth  of  brawn  and  brain  and  soui. 

282 


THE    DEMON    TASK    MASTER.  283 

In  the  gloomy  mine  descending, 
Where  the  flickering  lights  are  blending ; 
Note  liow  close  is  death  impending— foul  his  breath  upon  the  air. 
Careless  is  the  warning  spoken, 
Scarce  the  delvers  heed  the  token, 

For  a  monster,  darker,  grimmer, 

Makes  them  madly,  rashly  dare. 
And,  through  lamplight's  glare  and  glimmer, 

Holds  them  fiercely,  surely,  there, 
Willi  the  bravery  of  despair. 

Go  to  yonder  lonely  garret. 
If  your  heart  is  strong  to  bear  it, 
Mark  the  half-bent  shadow  where  it  darks  the  black  wall  scarcely 
more ; 

There  a  famished  woman  sitting, 
Works. with  patience  unremitting. 
With  her  weary,  ceaseless  stitching, 
Keeps  the  wolf  just  out  the  door; 
While  a  demon  still  enriching 
Self  with  stealing  from  her  store, 

Robs  her  pittance  lower  and  lower. 

Is  this  the  land  where  hands  of  labor 

Clasp  the  hands  of  toiling  neighbor, 
And  the  plowshare— not  the  saber— is  the  scepter  held  supreme  ? 

Is  it  here  where  honest  toilers 

Need  not  fear  of  strong  despoilers, 
Since  all  men  are  free  and  equal  ? 

Ah !     If  things  are  what  they  seem, 
This  is  but  the  bitter  sequel, 
Waking  of  a  century's  dream, — 

A  turning  back  of  progress'  stream. 

Shall  this  demon  reign  eternal 

O'er  this  blessed  land  fraternal? 
Shall  enchantment  so  internal  hold  us  ever  'neath  its  spell  ? 

No !     By  all  the  powers  of  heaven 

From  this  land  he  shall  be  driven. 
Usury  be  hurled,  unshriven. 

To  the  lowest  depths  of  hell ; 
Then  a  mighty  shout  be  given. 
Hear  the  hosts  their  voices  swell, 

"  Labor  conquers— all  is  well'.  " 


THE    END. 


APPENDIX. 


NOTE  A,  TO  PAGE  133. 

NATIONAL  BANKS — REGULATIONS  OF  THE  BANKING  BUSINESS. 

The  original  act  required  the  national  banks  to  keep 
on  hand  a  certain  amount  of  leo-al  tender  with  which  to 
redeem  their  notes  when  presented  for  that  purpose. 

Sec.  5191.  Every  national  banking  association  in 
either  of  the  following  cities:  Albany, Baltimore,  Bos- 
ton, Cincinnati,  Chicago,  Cleveland,  Detroit,  Louisville, 
Milwaukee,  New  Orleans,  New  York,  Philadelphia, 
Pittsburgh,  Saint  Louis,  San  Francisco,  and  Washing- 
ton, shall  at  all  times  have  on  hand,  in  lawful  money  of 
the  United  States,  an  amount  equal  to  at  least  twenty- 
five  per  centum  of  the  aggregate  amount  of  its  notes  in 
circulation  and  its  deposits;  and  every  other  association 
shall  at  all  times  have  on  hand  an  amount  equal  to  at 
least  fifteen  per  cent,  of  its  notes  in  circulation  and  its 
deposits. 

Act  of  June  20,  1874,  repealed  the  above  clauses,  as 
follows: 

Sec.  2.  That  section  thirty-one  of  the  "  national  bank 
act"  be  so  amended  that  the  several  associations  therein 
provided  for  shall  not  hereafter  he  required  to  keep  on 
hand  any  amount  of  money  whatever  hy  rea^son  of  the 
amount  of  their  respective  circulations;  but  the  monies 
required  by  said  section  to  be  kept  at  all  times  on  hand 
shall  be  determined  by  the  amount  of  deposits  in  all 
respects,  as  provided  for  in  the  said  section. 

284 


APPENDIX.  285 

NOTE   B,   TO   PAGE   139. 

BANK    NOTES    EXEMPT    FROM    TAXATION. 

Act  June  30,  1864.  And  all  bonds,  treasury  notes 
and  other  obligations  of  the  United  States  shall  be  ex- 
empt from  taxation  by  or  under  State  or  municipal 
authority. 

The  exemption  referred  to  in  the  foregoing  extends  to 
national  bank  currency. 

Revised  statutes. 

Sec.  5413.  The  words  "  obligation  or  other  security  of 
the  United  States  "  shall  be  held  to  mean  ail  bonds,  cer- 
tificates of  indebtedness,  national  [bank]  currency,  cou- 
pons. United  States  notes,  treasury  notes,  fractional  notes, 
certificates  of  deposit,  bills,  checks,  or  drafts  for  money,, 
drawn  by  or  upon  authorized  officers  of  the  United 
States,  stamps  and  other  representatives  of  value,  of 
whatever  denomination,  which  have  been  or  may  [be] 
issued  under  any  act  of  Congress. 

The  foregoing  section  was  amended  February  18, 1875, 
by  inserting  after  the  word  "  national  "  in  third  line,, 
the  word  •'  bank." 

NOTE  C,  TO  PAGE  245. 

THE    SOLDIER    AND    THE    BONDHOLDER. 

We  give  below,  in  tabulated  form,  the  statement  from 

Secretary  Sherman  of  the  expenses  of  the  Government 

on  account  of  the  late  civil  war,  from  July  1,  1861,  to 

June  30,  1879,  inclusive: 

Ordinary  expenditures $609,549,124 

Expenditures  growing  out  of  tlie  war $6,187,243,385 

Total 16,796,792,50^ 


286  LABOK    AND    FINANCE    KEVOLUTION. 

The  principal  items  of  the  war  expenses  are  the  fol- 
lowing, the  last  six  being  given  in  round  numbers: 

Interest  on  the  public  debt $1,764,256,198 

Pay  of  two  and  three  years  volunteers 1,040,102,702 

Subsistence  of  the  army 381,417,548 

Clothing  of  the  army 345,543.880 

Army  transportation 336,793,885 

Purchase  of  horses 126,672,423 

Other  quartermaster  expenditures  (in  round  numbers).  320,000,000 

Army  pensions 407,429,193 

Bounties  (including  additional  bounties  under  the  act 

ofl866) -- 140,281,178 

Refunding  to  states  for  war  expenses 41,000,000 

Purchase  of  arms  for  volunteers  and  regulars 76.000,000 

Ordnance  supplies 56,000,000 

Expenses  of  assessing  and  collecting  internal  revenue.  113,000,000 

Expenses  of  national  loans  and  currency 51,523,000 

Premiums 59,738,000 

According  to  this  statement,  the  pay,  cost  of  food  and 
clothing  of  the  volunteers  amounted  to  $1,767,064,130, 
while  the  bondholders'  interest  to  the  date  of  June  30, 
1879,  was  $1,764,256,198,  and  another  year's  interest 
must  be  added  to  find  the  amount  paid  to  the  Dresent 
date. 

Thus  we  find  that  the  bondholders  have  been  paid  over 
fifty  millions  more  for  their  services  than  the  soldiers 
were  paid  for  theirs. 

Not  only  this,  but  the  bondholders  are  to  receive  back 
double  their  principal  invested — a  principal  which  was 
loaned  in  depreciated  currency  to  be  paid  back  in  gold 
or  its  equivalent.  The  soldiers'  principal  of  health,  of 
strength,  of  vigorous  constitution  is  gone  forever,  and 
can  never  be  repaid. — Chicago  Express. 


APPENDIX.  287 


• 


NOTE   D,  TO   PAGE  50. 

The  following  comprise  all  the  treasury  notes,  legal 
tenders  and  other  species  of  money  issued  by  the  United 
States  during  the  war,  from  1861  to  1865: 

TREASURY    NOTES    OF    1861. 

The  act  of  March  2,  1861,  (12  Stat.  178) 
authorized  the  issue  of  $35,000,000  of  treas- 
ury notes,  to  be  received  in  payment  of  all 
debts  due  the  United  States,  including  cus- 
tom duties,  and  were  redeemable  at  any  time 
within  ten  years.     Amount  issued $35,364,450 

DEMAND    NOTES. 

The  act  of  July  17,  1861,  (12  Stat.  259) 
authorized  the  issue  of  $50,000,000  of  treas- 
ury notes,  not  bearing  interest,  payable  on 
demand.  The  act  of  February  12,  1862,  in- 
creased the  amount  authorized  $10,000,000, 
all  of  which  were  made  legal  tenders  by  act 
of  March,  1862.     Amount  issued $60,000,000 

SEVEN    THIRTIES    OF    1861. 

The  act  of  July  17,  1861,  (12  Stat.  259) 
authorized  a  loan  of  $250,000,000,  part  of 
which  was  to  be  in  treasury  notes,  with  in- 
terest at  seven  and  three-tenths  per  centum 
per  annum,  payable  three  years  after  date. 
Amount  issued $140,094,750 


288  LABOR    AND    FINANCE    REVOLUTION. 


LEGAL    TENDER    NOTES, 

The  act  of  February  25,  1862,  (12  Stat 
345)  authorized  the  issue  of  $150,000,000 
United  States  notes,  not  bearing  interest, 
payable  to  bearer.  Those  notes  to  be  a 
legal  tender,  except  for  interest  on  the  pub- 
lic debt  and  duties  on  imports.  Act  of  July 
11, 1862,  authorized  an  additional  $150,000,- 
000  of  these  notes.  Act  of  March  3,  1863, 
(12  Stat.  710)  an  additional  $150,000,000. 
Of  this  class  of  notes  there  were  issued . . .  $915,420,031 

(See  report  Secretary  of  Treasury.) 
CERTIFICATES   OF    INDEBTEDNESS. 

The  act  of  March  1,  1862,  (12  Stat.  352) 
authorized  the  issue  of  certificates  of  in- 
debtedness (got  up  in  the  form  of  money) 
to  public  creditors,  who  might  elect  to  re- 
ceive them,  to  bear  interest  at  the  rate  of 
six  per  cent,  per  annum.  The  act  of  May 
17,  1862,  (12  Stat.  370)  authorizing  the  is- 
sue of  these  certificates  in  payment  of  dis- 
bursing officer's  checks.  Interest  and  prin- 
cipal payable  in  lawful  money.  Amount 
issued $561,753,241 

FRACTIONAL    CURRENCY. 

Total  amount  authorized $50,000,000 

ONE   YEAR    NOTES. 

Act  of  March  3,  1863,  (12  Stat.  710)  au- 
thorized the  issue  of  $400,000,000  treasury 
notes,  with  interest  not  to  exceed  six  per 


APPENDIX.  289 

cent.,  redeemable  in  tliree  years,  principal 
and  interest  payable  in  greenbacks,  and  to 
be  legal  tender  to  the  extent  that  greenhacks 
were.     Amount  issued $44,520,000 

TWO   YEAR    NOTES, 

The  act  of  March  3,  (12  Stat.  710)  author- 
ized the  issue  of  $400,000,000  treasury  notes, 
interest  six  per  cent.,  principal  and  interest 
payable  in  greenbacks,  after  ten  years,  and 
to  be  legal  tender  at  their  face.  Amount 
issued $166,400,000 

COIN    CERTIFICATES. 

The  Fifth  Section  of  the  act  of  March  3, 
1863,  (12  Stat.  Til)  authorized  the  deposit 
of  gold  coin  and  bullion  with  the  treasurer, 
and  the  issue  of  certificates  therefor,  in 
denominations  the  same  as  United  States 
notes;  also  authorized  the  issue  of  these  cer- 
tificates in  payment  of  interest  on  the  pub- 
lic debt  and  directs  their  receipt  inpayment 
of  duties  on  imports.     Amount  issued, . .  .$^62,776,400 

COMPOUND    INTEREST   NOTES, 

The  act  of  March  3,  1863,  (12  Stat.  709) 
authorized  the  issue  of  $400,000,000  treas- 
ury notes,  with  six  per  cent,  compound  in- 
terest, payable  in  lawful  money,  after  three 
years,  and  to  he  a  legal  tender  at  their  face 
value.     Amount  issued $263,595,440 

19 


290  LABOK    AND    FINANCE    REVOLUTION. 

•     .  SEVEN    THIRTIES    OF    1864    AND    1865. 

The  act  of  June  30,  1864,  (13  Stat.  218) 
authorized  the  issue  of  $200,000,000  treas- 
ury notes  of  not  less  than  $10  each,  payable 
at  not  more  than  three  years  from  date,  or 
redeemable  at  any  time  after  three  years, 
with  interest  at  not  exceeding  seven  and 
three-tenths  per  cent,  per  annum. 

The  act  of  March  3,  1865,  (13  Stat.  408) 
authorized  a  loan  of  $600,000,000,  and  the 
issue  therefor  of  bonds,  or  treasury  notes^ 
bearing  seven  and  three-tenths  per  cent,  in- 
terest per  annum. 

These  were  all  issued  in  the  form  of  treas- 
ury notes,  to  be  paid  out  as  money  to  sol- 
diers and  other  creditors  of  the  Government. 
Amount  issued $829,992,500 

The  act  declares  that  such  of  the  seven-thirties  as 
shall  be  made  payable,  principal  and  interest  at  matur- 
ity, shall  be  a  legal  tender  to  the  same  extent  as  United 
States  notes.  This  was  the  last  legal-tender  act  of  Con- 
gress. 

QUESTIONS  AND  ANSWERS. 

During  the  preparation  of  this  volume  the  following 
questions  have  been  asked,  which  I  insert  with  their  ap- 
propriate answers: 

1.  What  is  the  difference  between  the  old  United  States  bank  and 
its  branches,  and  the  National  banks  and  branches? 

2.  Is  the  Government  bound  for  the  redemption  of  national  bank 
currency  ? 

3.  How  old  are  our  national  banks  ? 

4.  Were  the  bonds  by  express  terms  of  the  law  payable  in  coin 
prior  to  the  credit  strengthening  act? 


APPENDIX.  291 

5.  What  amount  of  gold  and  silver  is  there  in  the  United  States 
available  ibr  redemption  ? 

6.  Did  the  credit  strengthening  act  specially  bind  the  Govern- 
ment to  pay  the  bonds  in  coin  V 

7.  What  proportion  of  the  bonds  are  held  by  foreigners? 

8.  What  is  the  sum  of  the  bonded  debt? 

9.  What  are  the  Government's  resources,  or  available  means,  to 
pay  the  bonds  ? 

10.  What  IS  the  amount  of  coin  and  bullion  in  the  world  available 
for  money  ? 

11.  Can  the  bonded  debt  be  paid  before  maturity? 

12.  If  the  bonds  remain  unpaid,  how  long  will  it  take  for  the  in- 
terest to  absorb  the  wealth  of  the  nation  ? 

1.  The  old  United  States  bank  and  twenty-six  branches 
had  a  capital  of  but  $35,000,000,  and  its  notes  were 
redeemable  in  coin.  President  Jackson  vetoed  the  bill 
to  re-cliarter  it  on  the  grounds  that  it  was  a  dangerous 
money  power,  controlling  both  Congress  and  the  execu- 
tive, and  even  local  elections  and  State  legislatures. 
Not  only  this,  Jackson  held  to  the  greenback  doctrine 
that  the  paper  money  of  the  country,  as  well  as  coin, 
should  be  issued  by  the  Government,  and  instead  of  be- 
ing based  on  coin,  "  the  paper  money  should  be  based 
upon  the  faith  and  revenues  of  the  nation^ 

The  national  banks  have  an  aggregate  capital  of  about 
$500,000,000,  and  there  are  2,060  of  them.  Their  power 
for  evil  is  as  much  greater  than  the  old  banks  as  are 
their  numbers  and  combined  capital.  "We  have  no  one 
Jackson  able  to  crush  the  monster,  but  we  have  a  Green- 
back army  of  Jacksons  who  will  try  to  do  it. 

2.  The  Government  holds  United  States  bonds  to  in- 
demnify holders  of  national  currency  against  loss.  If 
these  bonds  sell  for  enough  to  redeem  the  notes  of  broken 
national  banks,  the  Government  will  redeem  them,  and 
not  otherwise. 

3.  The  first  national  bank  chartered  was  Jay  Cooke 
&  Co.'s  in  the  City  of  Washington,  about  the  beginning 
of  1864. 


292  LABOK    AND    FINANCE    KEVOLUTION. 

4.  No  war  bonds  except  about  $270,000,000  of  10-40s 
were  by  the  terms  of  the  law  expressly  payable  in  coin 
— the  balance  in  lawful  money  except  the  interest,  which 
was  payable  in  coin. 

5.  Not  to  exceed  $150,000,000  of  coin  is  held  by  the 
banks  and  United  States  treasury  for  redemption  pur- 
j)Oses. 

6.  Tlie  credit  strens:theninw  act  declared  all  the  bonds 
payable  "^r^.  coin  or  its  equivalent.'^ 

7.  The  bonds  are  used  as  an  international  currency  by 
the  large  American  and  European  traders.  Most  of 
them,  however,  are  held  by  John  Sherman's  syndicate, 
who  are  New  York  partners  of  London  and  German 
bankers  and  capitalists. 

8.  The  sum  of  the  bonded  debt,  August  1,  was  $1,- 
901,716,110. 

9.  The  Government's  only  resources  or  means  to  pay 
the  public  debt,  are  its  revenues  from  taxation,  and  the 
issue  of  its  own  legal  tenders.  Heretofore  it  has  paid  one 
debt  by  making  another.  It  paid  off  the  5.20  bonds  in 
4  per  cents.,  worth  a  trifle  more  than  gold. 

10.  The  amount  of  coin  and  bullion  in  the  world  is 

estimated  by  Fawcett,  as  follows: 

Gold $1,970,050,000 

Silver 1,800,000,000 

Total $3,775,550,000 

11.  It  can  be  paid  any  time  the  Government  has  the 
legal  tender  to  liquidate  it,  and  if  such  legal  tender  is 
refused,  interest  mav  leo^allv  cease. 

12.  The  wealth  of  the  nation  is  estimated  at  $27,000,- 
000,000.  Calling  the  public  debt  $2,000,000,000  at  4 
per  cent,  compounded  according  to  bank  custom  and 
calculation,  it  would  amount  in  forty -eight  years  to  $27,- 


APPENDIX.  293 

800,000,000,  01-  $800,000,000  more  than  the  entire  wealth 
of  the  nation, 

1.  When  did  the  destruction  of  greenbacks  (by  burning)  com- 
mence ? 

2.  When  did  it  cease;  from  wliat  cause,  and  how  much  was  de- 
stroyed ? 

3.  Were  bonds  ever  bought  from  the  Government  for  greenbaclis 
other  than  giving  dollar  for  dollar?  Hard  money  men  tell  us  that 
when  gold  was  2.85  it  took  $2.85  of  greenbacks  to  buy  $1  of  bonds. 

4.  Could  the  bonds  be  called  in  immediately  and  paid  olF  without 
■breaking  faith  with  the  holders  as  to  the  time  they  were  to  run '? 

5.  Were  the  10.40  bonds  sold  for  greenbacks,  or  exchanged  for 
other  bonds? 

6.  How  much  gold  has  been  paid  out  of  the  treasury  for  redemp- 
tion purposes  ? 

1.  The  Law  authorizing  the  contraction  and  destruc- 
tion of  the  greenbacks  was  passed  April  12,  186G,  and 
the  process  commenced  immediately  thereafter. 

2.  The  act  of  contraction,  as  far  as  greenbacks  were 
concerned,  was  repealed  in  January,  1868,  after  $70,- 
736,630  of  legal  tenders  had  been  destroyed.  It  was 
brought  about  by  the  force  of  public  sentiment.  Aside 
from  the  legal  tenders,  over  $1,500,000,000  of  treasury 
notes  used  as  currency  were  destroyed. 

3.  When  gold  was  2.85  and  greenbacks  worth  less 
than  40  cents  in  gold  on  the  dollar,  greenbacks  were 
convertible  into  bonds  at  par. 

4.  If  the  public  good  required  the  immediate  payment 
of  the  bonds  in  greenbacks,  or  any  other  kind  of  money 
at  the  disposal  of  the  Government,  it  would  not  be  so 
great  a  breach  of  faith  as  it  was  for  the  Government  to 
unconditionally  abolish  slavery,  without  consideration 
to  the  owners,  after  the  institution  had  been  supported 
for  years  by  the  laws  and  the  constitution  of  the  country. 
That  institution  became  a  ])ublic  evil,  threatening  the 
life  of  the  nation  and  the  liberties  of  the  people.  J3ut 
the  slaves  were  the  private  property  of  individnals,  ac- 


294  LABOR    AND    FINANCE    REVOLUTION. 

quired  according  to  the  laws  of  the  land.  Should  our 
public  debt,  the  bonds  and  bondholders,  become  a  source 
of  danger  to  American  liberty,  and  sorely  oppressive  to 
American  industry,  the  Government  has  the  same  right 
even  to  repudiate  the  debt,  absolutely,  that  it  had  to 
confiscate  the  slaves  and  repudiate  the  institution  of 
slavery. 

5.  The  10.40  bonds  were  authorized  to  be,  and  were 
sold  for  lawful  money  (greenbacks)  of  the  United  States, 
or  for  any  of  the  certificates  of  indebtedness  or  treasury 
notes  outstanding. 

6.  A  little  more  than  $5,000,000  of  gold  has  been 
paid  out  for  the  redemption  of  greenbacks,  according  ta 
the  last  treasury  report,  since  January,  1S79,  while  the 
interest  we  are  paying  on  the  borrowed  gold  held  for 
redemption  purposes,  costs  about  $5,200,000  a  year. 

THE    CREDIT   STRENGTHENING    ACT. 

Congressman  Van  H.  Manning,  of  Mississippi,  in  a  recent  speech, 
stated  that  the  credit  strengthening  act,  changing  the  currency  bonds- 
to  coin  bonds,  was  a  contract  between  the  Government  on  the  one 
hand,  and  the  bondholders  on  the  other;  that  the  bondholders  agreed 
to  make  a  reduction  of  S  per  cent,  in  the  mterest  if  the  Government 
would  change  their  currency  bonds  to  coin  bonds,  and  make  them 
payable  thirty  years  after  date;  that  the  2  per  cent,  reduction  was  the 
■  consideration  given  by  the  bondholders  in  the  transaction,  and  that 
this  consideration  made  the  act  binding  in  law,  and  that  there  was 
no  alternative  by  which  we  could  relieve  ourselves  of  the  bonds 
under  thirty  years  without  amending  the  constitution,  and  no  power 
in  this  Government  that  could  force  the  payment  of  the  bonds  sooner^ 
not  even  in  gold,  without  changing  the  constitution.  Will  you  give 
an  opinion  on  this  subject? 

The  credit  strengthening  act  was  passed    in  March, 

1869.     An  attempt   was   made  to  pass    it  during   the 

session  of  1867-8,  but  tailed.     During  its  pending,  a 

presidential  nomination  and  election  took  place.     The 

Democratic  party  nominated  Horatio  Seymour  on  a  plat- 


APPENDIX.  295 

form  that  opposed  the  payment  of  currency  obligations 

in  coin.     The  Republican  party  nominated  U.  S.  Grant 

on  the  urgent  solicitation  and  petition  of  forty  capitalists 

of  New  York  City,  who  represented   in  the  aggregate 

about  $500,000,000.     In  regard  to  the  political  fugling 

at  this  time,  and   the  "contract "   which  Mr.  Van   II. 

Mannino'  claims  was  entered  into  between  the  Govern- 

ment   and   the  bondholders,  a  cotemporaneous   writer 

says: 

"The  Rothschilds  were  in  possession  of  several  hundred  millions 
of  5.20  bonds,  purchased  at  about  60  cents  on  the  dollar,  or  less,  and 
were  particularly  interested.  Their  agent,  August  Belniout,  wlio  se- 
cured  the  position  of  chairman  of  the  Democratic  Nationul  Com- 
mittee, was  instructed  by  Baron  James  Rothschilds  as  early  as  March 
13,  1868,  that  unless  the  Democratic  party  went  in  for  paying  the  5  20 
bonds  in  gold,  it  must,  be  defeated.  The  first  step  was  to  have  the 
National  Convention  held  ni  New  York  City.  It  accordingly  con- 
vened there  on  the  4th  of  July,  1868.  Belmont  and  his  satalites  were 
unable  to  control  the  convention,  at  least  in  the  matter  of  the  plat- 
form, and  it  declared  that  all  obligations  against  the  Government  not 
expressly  payable  in  coin  should  be  paid  in  iawful  money  of  the 
United  States.  Belmont  owned  a  large  interest  in  The  New  York 
World,  the  leading  Democratic  paper  of  the  country,  which,  on  the 
15th  of  October,  came  out  in  a  double-leaded  editorial  denouncing 
Seymour  as  unavailable  and  unfit,  and  advised  his  withdrawal.  This 
so  demoralized  the  Democracy  that  Grant  had  an  easy  walk  over  the 
course." 

Before  this  time,  John  Sherman,  O.  P.  Morton,  and 
other  leading  Republican  Senators  had  opposed  coin 
payment  of  the  bonds.  After  Grant's  election  they 
advocated  it,  or  were  silent  on  the  subject.  In  his  in- 
augural speech  Grant  warned  his  party  that  no  repudi- 
ator  of  one  farthing  of  the  public  debt  ivotild  be  trusted 
in  public  placed  He  immediately  called  an  extra  ses- 
sion of  Congress.  The  first  bill  presented,  the  first  bill 
passed,  and  the  first  act  approved,  was  the  credit  strength- 
ening act.  Not  a  word  was  uttered  in  Congress  or  out, 
about  a  reduction  of  interest  and  refunding  of  the  6  per 
cent,  bonds  into  i  per  cents,  for  nearly  two  years  after- 


296  LABOR    AND    FINANCE    REVOLUTION. 

wards.  If  there  was  such  a  contract  there  must  be  a 
record  of  it.  It  was  never  made  public,  never  acted  up- 
on in  Congress,  never  made  known  to  the  people.  The 
only  contract  ever  made  with  the  bondholders  was  that 
political  contract  of  186S,  between  Grant  and  the  Re- 
publican leaders  on  the  one  side,  and  Belmont  and  other 
Democratic  bondholders  on  the  other,  that  if  the  former 
would  pledge  themselves  to  pass  and  carry  out  the  credit 
strengthening  act  if  elected,  the  other  would  defeat  their 
own  party,  and  secure  the  election  of  the  former.  That 
was  the  only  contract.  Grant's  two  terms,  and  John 
Sherman's  continuation  at  the  head  of  the  finance  de- 
partment, was  the  Republican  consideration,  and  gold 
payment  of  the  5.20  bonds  was  the  consideration  on  the 
part  of  the  bondholding  Democracy.  The  contract  was 
a  fraud  in  its  conception,  its  execution  a  violation  of  the 
constitution,  and  constitutes  one  of  the  most  damnable 
acts  of  political  corruption,  and  the  most  villainous  be- 
trayal of  public  trust,  ever  practiced  upon  an  unsuspect- 
ing and  confiding  constituency;  and,  when  fully  under- 
stood, it  will  brand  with  eternal  infamy  every  name  in 
connection  with  the  disreputable  transaction. 

THE    $400,000,000    RESTRICTION. 

Will  you  give  an  opinion  on  the  following  Chicago 
Tribune  editorial? 

''Under  our  constitution  the  power  to  malte  paper  money  in  time 
of  peace  a  legal  tender  does  not  exist.  A  majority  of  the  Supreme 
Court  sanctioned  the  issue  of  such  paper  during  the  war  as  an  act  of 
imperious  national  necessity.  It  was  also  decided  that,  the  necessity 
having  passed,  the  amount  of  such  paper  was  limited  to  the  sum 
originally  designated,  .^400,000,000. 

"  There  is  no  constitutional  power  on  the  part  of  the  Government 
to  increase  the  legal  tender  paper  beyond  this  limit,  and,  if  this  'war- 
money  '  be  withdrawn,  there  is  no  power  to  make  a  new  issue  of  paper 
of  that  kind.     Herein  is  the  wide  difl'erence  between  our  Government 


APPENDIX.  297 

V 

and  all  olhers.  In  France,  England  and  Germany,  and  all  other 
nations,  the  power  to  make  paper  a  legal  tender  is  ample,  and  can  be 
exercised  at  any  time,  as  it  is  now  in  England." 

The  Tribune  s  assumption  that  no  power  exists  under 
our  constitution  to  make  paper  money,  in  time  of  peace, 
a  legal  tender  is  without  warrant  in  law,  logic  or  common 
sense.  It  admits  that  all  other  nations  possess  this  ])Ower, 
and  that  herein  is  the  wide  difference  ))etween  our  Gov- 
ernment and  all  others.  If  all  other  nations  possess  this 
power,  where  did  they  get  it?  Did  the  monarchies  of 
the  old  world  absorb  all  of  this  power,  leaving  none  for 
the  republics  of  the  new? 

The  monetary  prerogative  is  a  sovereign  attribute. 
In  this  country  the  power  to  make  anything  legal  tender 
rested  with  the  people  at  large,  in  common  with  all 
other  powers  of  sovereignty.  By  the  constitution  the 
people  delegated  to  Congress  all  the  power  they  pos- 
sessed over  the  money  question.  The  Supreme  Court 
decided  that  if  Congress  had  not  the  power  to  decide 
what  should  be  legal  tender  in  this  country,  the  power 
was  annihilated.  The  court  further  decided  that  Con- 
gress was  not  only  authorized,  but  required  to  issue 
paper  legal  tenders  when  any  emergency  should  require 
it,  whether  that  emergency  be  war,  famine,  financial  de- 
pression, or  any  exportation,  or  destruction  of  the  money 
volume,  and  that  Congress,  and  not  the  court  was  the 
proper  judge  of  the  necessity  or  emergency.  The  court 
also  decided  that  Congress  had  a  clear  right  to  adopt 
any  measure  necessary  to  carry  out  any  of  the  objects 
of  the  Government,  and  not  specifically  denied  or  for- 
bidden by  the  constitution. 

The  limit  of  $400,000,000  was  not  passed  upon  by 
the  court.  It  made  no  reference  to  the  volume.  The 
first  legal  tender  act  limited  the  volume  to  $150,000,000. 


298  LABOR    AND    FINANCE    REVOLUTION. 

The  second  extended  it  to  $300,000,000.  The  volume 
was  afterwards  increased  to  $432,000,000  greenbacks 
proper,  and  over  $1,000,000,000  interest-bearing  legal 
tender  treasury  notes. 

The  $400,000,000  limit  was  an  act  of  Congress  passed 
June  30,  1864,  near  the  close  of  the  war.  It  provided 
fur  the  issue  of  $400,000,000  legal  tender  7.30  treasury 
notes  to  be  redeemed  in  three  years,  and  also  provided 
that  the  permanent  volume  of  Uni-ted  States  notes 
should  never  exceed  $400,000,000.  Congress  had  the 
same  authority  to  limit  the  volume  to  four  thousand 
millions,  that  it  had  to  fix  the  sum  at  four  hundred  mil- 
lions. And  it  has  the  same  authority  to  change  or 
enlai'ge  the  volume  that  it  has  to  contract  or  extino:uish 
it.  The  Constitution  confers  upon  Congress  all  the 
power  over  the  money  question  that  exists  in  sovereignty. 
The  people  yielded  up  to  that  body  all  the  power  they 
possessed  over  that  element  in  regard  to  legal  tender. 
"Whatever  any  power  below  heaven  can  do,  in  regard  to 
legal  tender.  Congress  can  perform  under  the  constitu- 
tion. It  is  false,  and  a  national  libel,  to  say  that  our 
Government  does  not  possess  as  much  power  to  protect 
its  citizens  as  the  monarchies  of  the  old  world.  It  is 
absurd  to  claim  that  Congress  has  power  to  issue  paper 
legal  tender  to  protect  itself,  while  it  is  denied  the  right 
to  make  such  issues  to  protect  the  people.  "Congress 
shall  have  power  to  coin  money" — it  matters  not 
whether  it  is  demanded  for  war  or  for  commerce.  The 
constitution  does  not  specify  the  emergencies  which 
shall  warrant  the  making  of  ])aper  legal  tenders.  Con- 
gress is  the  sole  judge  of  the  necessity.  The  court  has 
so  decided;  if  the  emergency  should  come  in  time  of 
peace,  the  Government  has  the  same  right  to  issue  them 


APPENDIX.  29^ 

as  if  the  emergency  was  war.  If  Congress  can  make 
paper  legal  tender  for  war,  it  can  for  peace.  If  it  can 
make  $400,000,000,  it  can  make  $4,000,000,000.  If  it 
has  any  power  over  the  quantity  or  quality  of  legal 
tender,  it  has  all  power,  and  it  is  its  own  judge  of  the 
necessity  and  extent  of  its  exercise. 

THE    GREENBACK. 

"  "What  constitutes  the  value  of  the  greenback?" 
Its  value  consists  in   the  service  it  is  capable  of  per- 
forming. 

"  Suppose  a  man  receives  a  hundred  dollar  greenback  from  the 
Government  for  a  mule,  the  Government  has  received  a  hundred  dol- 
lars of  intrinsic  value,  but  where  does  the  man  get  his  value?" 

By  doing  as  the  Government  did,  give  it  in  exchange 
for  a  hundred  dollars'  worth  of  other  property  that  he 
may  need,  that  some  other  man  has  to  spare. 

"  Where  will  No.  2  get  his  value?" 

By  repeating  the  operation  with  some  other  man. 

"  In, the  end,  will  not  the  last  man  who  receives  it  be  short  a  bun- 
dred  dollars  ? " 

No;  for  the  last  man  who  receives  it  is  the  Govern- 
ment's tax-gatherer.  It  returns  to  the  party  who  first 
issued  it,  and  received  full  value  of  it.  It  has  made  the 
financial  circuit,  and  every  man  who  received  it  in  ex- 
change for  a  hundred  dollars  of  intrinsic  value  he  did 
not  need,  has  received  for  it  a  hundred  dollars  of 
intrinsic  value  he  did  need.  Every  hand  it  has  passed 
through  has  been  accommodated,  no  loss  has  been  sus- 
tained, no  expense  has  been  incurred  by  the  Government 
or  tiie  people  in  interest  to  detract  from  the  value  of 
the  property  exchanged,  in  short  it  has  performed  all 
the  service  without  cost  that  ten  gold  eagles  could  have 
performed  at  an  expense  of  a  hundred  dollars  and  in- 
terest. 


300  LABOR    AND    FINANCE    REVOLUTION. 

"I  see  that  so  long  as  it  can  be  made  to  keep  up  the  circuit,  it  is 
superior  to  coin,  or  money  of  intrinsic  value,  but  may  not  loss  of 
confidence  stop  it  in  its  course,  and  prevent  it  from  making  the  cir- 
cuit, and  thereby  subject  the  man  who  last  receives  it  to  loss?" 

Its  legal  tender  qualities  will  perpetuate  confidence 
and  keep  it  moving  on  its  course  homeward. 

"What  constitutes  that  quality  called  legal  tender?" 

It  is  a  solemn  compact  by  all  the  people  of  the  nation; 
expressed  by  their  chosen  representatives,  and  approved 
by  their  executive,  that  to  enable  it  to  keep  in  motion 
on  its  circuit,  so  as  not  to  stop  on  the  hands  of  any 
member  of  society,  each  shall  receive  of  the  other  for 
all  debts  dues  and  taxes  of  every  nature  and  description, 
at  its  full  face  value,  and  unless  a  law  be  passed  invalid- 
ating this  contract,  confidence  is  perpetuated  by  thus 
perpetuating  its  services  and  offices. 

"  What  are  the  advantages  of  this  currency  over  bank  notes?" 

1.  It  is  within  the  control  of  our  own  people,  while 
bank  currency  may  be  entirely  in  the  control  of  aliens, 
foreigners  and  enemies. 

2.  It  costs  nothing  but  the  printing  of  it,  while  bank 
currency  costs  its  face  at  the  start,  and  from  4  to  6  per 
cent,  per  annum  to  maintain  it. 

3.  It  is  legal  tender  between  man  and  man,  which 
bank  notes  are  not. 

4.  Its  redemption  is  always  sure  under  the  compact 
of  legal  tender,  both  between  the  members  of  society 
and  between  them  and  their  Government,  while  bank 
note  redemption  may  be  only  in  greenbacks,  and  even 
for  this  the  banks  are  not  required  to  keep  on  hand  a 
dollar  of  reserve  for  that  purpose. 

Should  they  fail,  the  Government  has  promised  to  re- 
deem them  in  time,  which  might  cause  much  delay,  in- 


APPENDIX.  301 

convenience,  and  even  a  heavy  loss  if  the  money  were 

necessary  to  make  legal  tender  payment. 

"Has  coin  any  advantages  over  greenbacks  as  a  domestic  cur- 
rency V " 

Not  any,  but  many  disadvantages. 

In  fact  it  should  never  be  used  as  a  medium  of  ex- 
change except  in  the  form  of  bullion  to  pay  foreign 
balances. 

It  is  both  expensive  and  inconvenient,  and  performs 

the  service'  of  money  no  better  than  greenbacks,  and  is 

liable  to  be  exported  in  large  quantities,  at  a  time  our 

o,vn  industries  need  it  most,  thereby  endangering  money 

amines,  panics  and  ruinous  financial  disturbances. 

THE    INCREASE    OF    DEBT. 

"  Have  the  vast  debts  of  the  world  more  than  doubled  during  the 
last  twenty-five  years  in  consequence  of  extravagance  and  over-pro- 
duction of  the  laboring  class,  as  is  charged  ?" 

The  increase  of  debt  has  grown  out  of  the  extrava- 
gance of  despots,  and  the  over-production  of  fools  to 
submit  to  it. 

^  As  men  are  but  children  of  a  larger  growth,  so  kings 
and  rulers  are  but  men  of  larger  powers.  Each  class 
has  its  sports.  The  child  chases  the  butterfly  and  robs 
the  bird's  nest.  The  man  delights  in  the  fox  and'  rabbit 
chase,  the  horse  race  and  cock  fight,  while  kings  and 
rulers  stake  their  realms  on  games  and  ten  pins  in 
which  the  balls  used  are  made  of  cast  iron,  and  pins  of 
men. 

In  these  sports,  those  pins  that  are  knocked  down  are 
buried,  while  those  that  remain  are  compelled  to  pay  the 
expenses  and  foot  the  bills  on  both  sides. 

Let  us  for  a  moment  consider  the  costs  of  these  ex- 
travagant sports  for  the  last  twenty-five  years. 


302  '         LABOK    AND    FINANCE    KEVOLUTION. 

From  carefully  compiled  official  statistics  of  the  vari- 
ous nations,  we  o^atlier  the  followin<y  facts  which  include 
in  addition  to  troops  slain  in  battle,  a  portion  of  the 
deaths  occasioned  by  the  ravages  of  war: 

1.  Lives  lost: 

Crimean  war  (1852  to  1857) 750,000 

Italian  war  (1859) 45,000 

Schleswig-Holstein 3,000 

American  civil  war _ — 500,000 

Prussia,  Austria  and  Italy  (1866) 45,000 

Mexico,  China,  Morocco,  Paraguay 65,000 

Franco-German  (1870-75).. 215,000 

Bulgaria  and  Armenia  (1876-77) 25,000 

Total ...1,648,000 

2.  Cost: 

Crimean  war £340  000,000 

Italian  war  (1859). 60.000.000 

American  civil  war  (north) 940,000,000 

American  civil  war  (south) 460,000,000 

Schlcswitc-Holstein 7,0n0,000 

Austria  and  Prussia  (1866) 66,000000 

Mexico,  Morocco  and  Paraguay. 40,000,000 

Pranco-German 500,000,000 

Total *... £3,813,000,000 

This  reduced  to  dollars  is  $19,065,000,000. 
This  vast  sum  of  over  nineteen  thonsand  million 
dollars  added  to  the  people's  burdens  within  the  last 
twenty-five  years  is  enough  to  stagger  the  enterprise  of 
the  world  for  the  next  century.  To  bear  it,  and  to  meet 
its  annual  interest,  requires  the  co-operation  of  every 
hand  of  labor  and  resource  of  wealth. 

To  pay  off  these  enormous  debts  and  to  meet  the  an- 
nual interest  with  no  other  medium  of  exchange  but 
that  based  upon  the  limited  and  diminishing  quantity 
of  gold  and  silver  in  the  world,  will  enslave  and  im- 
poverish every  soul  on  earth  except  the  holders  of  these 
debts,  who,  through  them,  will  be  made  the  owners  of 
the  globe  and  the  perpetual  rulers  of  mea.^   (i  5       7 


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